Even as markets brace for some short-term volatility, both gold and silver appear set to continue their long-term upward march. According to new projections from Bank of America (BofA), gold could climb to $5,000 per ounce next year, while silver may rally toward $65 per ounce.
The bank’s latest outlook sees average 2026 prices hovering near $4,438 for gold and $56.25 for silver, underscoring continued confidence in precious metals despite potential near-term pullbacks.
Bank of America’s Bold Forecast
BofA analysts — who were among the earliest to forecast gold’s path to $4,000 — are now revising their expectations even higher. The research team, led by Michael Widmer, attributes this bullish stance to a mix of fiscal expansion, rising government debt, persistent inflation, and anticipated rate cuts.
“The U.S. administration’s fiscal policies, widening deficits, and efforts to stimulate capital inflows could all keep gold prices well-supported,” the team noted.
BofA believes that a 14% rise in investment demand alone could propel gold to $5,000 per ounce, and they even outline a scenario where prices could reach $6,000 — though that would require a 28% surge in investor buying.
Temporary Consolidation Possible
While the long-term trend looks favorable, analysts do acknowledge that the market might pause for consolidation after such strong inflows. Recent data shows ETF investments in gold jumped 880% year-over-year in September, reaching a record $14 billion. Total physical and paper gold holdings have now grown to represent over 5% of global equity and fixed-income markets — a level that could warrant a short-term breather before the next leg higher.
Silver’s Story: Supply Deficit Supports Prices
Silver’s outlook remains constructive as well, even though total demand may decline by around 11% next year. BofA still anticipates a market deficit, which should help stabilize and support silver prices near their forecast averages.
The analysts pointed out one key risk: shifting demand patterns in the solar industry. Silver consumption in photovoltaic (PV) solar panels is expected to reach its peak next year, possibly leading to softer industrial demand thereafter. However, investment and jewelry sectors could offset some of that weakness.
Bottom Line
Despite the potential for short-term corrections, both gold and silver appear to be in robust long-term uptrends driven by monetary easing, fiscal imbalances, and sustained investor interest. If Bank of America’s outlook proves accurate, 2026 could be a historic year for precious metals — one where gold and silver redefine their all-time highs.
