BNP Paribas projects gold to rise over 20% to $5,000 an ounce, citing Fed pressure and a 3.5% dollar decline.
BNP Paribas set a 12-month gold price target of $5,000 an ounce, representing over 20% upside from current levels. The forecast hinges on macro forces, including a projected 3.5% decline in the U.S. dollar and political pressure on the Federal Reserve.
Gold has lagged expectations this year but recently hit its highest level since February. Central banks, which account for 89% of global reserves, plan to increase gold allocations, while retail ETF inflows are expected to follow as geopolitical tensions ease.
Bullion traded 0.8% higher during the segment, supported by easing Middle East tensions after reported Iran-Oman shipping accord talks kept Brent crude under $80 a barrel. The bank’s base case assumes continued macro shifts favoring precious metals.