Bank of America has increased its gold price predictions for this year and next, citing the ongoing uncertainty surrounding U.S. trade policies as a factor that will continue to support prices in the short term. The new forecasts suggest gold could reach $3,063 per ounce in 2025 and $3,350 per ounce in 2026, up from previous estimates of $2,750 per ounce and $2,625 per ounce, respectively.

The current spot gold price stands at around $3,024 per ounce, having surged more than 15% since the beginning of the year due to economic and geopolitical concerns stemming from President Donald Trump's trade agenda. Bank of America highlighted the potential for gold prices to rise to $3,500 per ounce within the next two years if investment demand grows by 10%.

Furthermore, the bank emphasized that central banks currently hold about 10% of their reserves in gold, a percentage that could potentially rise to over 30%, providing strong support for gold prices. However, risks to the upward trend in gold prices include factors like U.S. fiscal policies becoming more constrained, easing geopolitical tensions, and improvement in global trade relations.

The upcoming focus is on possible retaliatory tariffs that the Trump administration might impose on April 2.