Bank of America Global Research discusses Gold and Silver outlook and forecasts over the coming year. BofA's official end-2021 forecast for Gold is $2,213/oz and for silver is $31.25/oz.
"Gold has rallied over falling real rates. Continued fiscal spending as governments are mending the damage from COVID-19, backstopped by central banks means that interest rates will likely remain low, at the same time as the economy reflates. Financial repression may be with us for a while, so we reinforce our $3,000/oz forecast,"BofA notes.
"Silver benefits from this macro backdrop too, but demand should also strengthen on the back of the green stimulus; we see $35/oz feasible next year, but highlight that the white metal could rally to $50/oz in the medium-term,"BofA adds.