BofA hikes target for gold 18 months ahead by half

(Sharecast News) - Strategists at Bank of America hiked their target for gold prices in 18 months' time by half in anticipation of central banks and governments doubling the size of their balance sheets and fiscal deficits, respectively.

BofA now expected the yellow metal to hit $3,000/oz., versus a prior price forecast of $2,000/oz..

Central banks' balance sheets had remained "stable" at between 21% to 28% of gross domestic product over the past decade, much like the price of gold, but that was about to change, the investment bank's strategists said.

On the flip-side nevertheless, they cautioned that "a strong USD backdrop, falling equity market volatility, and weak jewelry demand in India & China may remain headwinds."

-- More to follow --