Gold could hit $3,500 per ounce within the next two years with central banks and China's insurance industry driving demand, according to Bank of America. Gold has gained 14% this year to break $3,000 per ounce for the first time as geopolitical tensions and President Donald Trump's trade war pushes some investors into safe-haven assets. Bank of America now sees gold averaging $3,063 per ounce this year and $3,350 in 2026. "Uncertainty around Trump Administration trade policies could continue to push the [U.S. dollar] USD lower, further supporting gold prices near-term," commodity analysts led by Michael Widmer told clients in a Wednesday note. Prices can go even higher to $3,500 if investment demand grows 10%, according to the bank. China's insurance industry can invest 1% of its assets in gold, which is equivalent to about 6% of the annual gold market, according to the commodity analysts. Central banks, meanwhile, are already holding about 10% of their reserves in gold and could increase this figure to 30% or more, the analysts wrote. Retail investors are also increasing their exposure through physically backed exchange-traded funds, with assets under management rising 4% year over year in the Americas, Europe and Asia, according to the bank. Get Your Ticket to Pro LIVE Join us at the New York Stock Exchange! Uncertain markets? Gain an edge with CNBC Pro LIVE , an exclusive, inaugural event at the historic New York Stock Exchange. In today's dynamic financial landscape, access to expert insights is paramount. As a CNBC Pro subscriber, we invite you to join us for our first exclusive, in-person CNBC Pro LIVE event at the iconic NYSE on Thursday, June 12. Join interactive Pro clinics led by our Pros Carter Worth, Dan Niles and Dan Ives, with a special edition of Pro Talks with Tom Lee. You'll also get the opportunity to network with CNBC experts, talent and other Pro subscribers during an exciting cocktail hour on the legendary trading floor. Tickets are limited!
