BANK OF AMERICA RAISES GOLD TARGET TO $3,500

WEEKLY MARKET SNAPSHOT: Gold’s Historic Momentum Builds

Monday, March 24, 2025:
Gold saw slight consolidation, easing by $6.00 to $3,015.60. Profit-taking and a rally in U.S. equities trimmed momentum, while a firmer U.S. dollar added modest headwinds. Silver held its ground, with May contracts ticking up to $33.53.

Tuesday, March 25, 2025:
Gold gained $13.80 to close at $3,029.40, supported by continued demand in light of global policy concerns. Silver surged to $34.22. A softer dollar and weakening oil prices added support, while Treasury yields hovered around 4.3%.

Wednesday, March 26, 2025:
Markets saw light selling in gold, down $2.20 at $3,023.70, as stronger Treasury yields and dollar strength offset persistent haven interest. Silver edged slightly higher to $34.215, as volatility at elevated levels suggests room for further upside.

Thursday, March 27, 2025:
Gold surged to an intraday record high of $3,065.50, closing up $38.20 at $3,060.70. Silver advanced to $34.745. Continued buying and low volatility conditions helped metals push higher, while equity markets responded to renewed trade tensions and tariff headlines.

Friday, March 28, 2025:
Gold hit another record—$3,124.40—before settling at $3,114.90. Spot gold ended the day at $3,079.20, up 0.74%. Silver posted strong gains, rising to $35.415. A hotter-than-expected Core PCE reading lifted inflation concerns, with central bank buying also underpinning the rally.

MACRO OUTLOOK: Inflation Data Keeps Pressure on the Fed

What’s Moving Markets:

• Core PCE Rises: February’s core PCE index increased 0.4%, higher than January’s 0.3% and exceeding forecasts. The year-over-year rate also ticked up to 2.8%.
  
• Headline Inflation Steady: Broader inflation met expectations at 0.3% month-over-month and 2.5% annually.
  

Gold’s Response:
Gold futures jumped to $3,124.40 before easing, and spot prices closed at $3,079.20. These moves highlight continued interest in gold as markets weigh inflation’s impact on future policy.

Consumer Behavior Shift:

• Spending Slows: Personal consumption rose 0.4%, falling short of estimates.
  
• Income Rises: Personal income jumped 0.8%, signaling more caution from households.
  

What It Means:
The mix of rising inflation and tempered spending complicates the Fed’s balancing act. With rate cut expectations still fluid, markets are watching data closely—and gold is staying firmly in the spotlight.

BANK OF AMERICA RAISES GOLD TARGET TO $3,500

Bank of America has increased its 2025 and 2026 gold price forecasts, citing steady demand from institutional, retail, and central bank channels.

Updated Forecasts:

• 2025 Target: $3,063/oz (previously $2,750)
  
• 2026 Target: $3,350/oz, with potential to reach $3,500 if demand grows 10%
  

Where Demand May Come From:

• Chinese insurance firms could allocate just 1% to gold, representing 6% of global market supply.
  
• Central banks may raise gold reserves toward 30% for balance sheet efficiency.
  
• Retail flows are climbing—global ETF holdings are up 4% YTD.

Strategic Insight:
Bank of America suggests this rally is more than price-driven—it signals structural changes in how institutions view gold as a core reserve asset in a changing financial system.

BLOOMBERG BACKS GOLD & BITCOIN HYBRID STRATEGIES

Bloomberg Index Services has introduced new indices blending gold and Bitcoin, recognizing both as alternative tools in an increasingly complex environment.

Performance Snapshot:

• Gold: Up 15% YTD, holding firmly above $3,000
  
• Bitcoin: Down 21% from January highs, now around $86,000

New Index Products:

• BBIG: Equal-weighted Bitcoin & Gold Index
  
• BBUG: Includes U.S. Dollar in the allocation mix
  

What It Means:
The new indices aim to reduce volatility and improve liquidity. Bloomberg notes gold’s stability complements Bitcoin’s higher-risk profile—positioning both as tools for capital protection and flexibility during stress scenarios.

GOLD’S $3,000 BREAKOUT SIGNALS STRATEGIC SHIFT

The World Gold Council sees gold’s recent breakout as part of a wider institutional shift—marking a return to gold’s core role in portfolio strategy.

Key Developments:

• Gold surged from $2,500 to $3,000 in just 210 days.
  
• Global gold ETFs saw $3 billion in net inflows last week, led by $12 billion in the U.S. this year.
  
• Switzerland exported 214 tonnes of gold to the U.S. in February—likely to back futures contracts.
  

Central Bank Moves:

• Countries like China, Poland, and Bolivia are boosting gold reserves not just for stability, but for economic resilience.
  
• The U.S. has included gold in its critical minerals strategy, signaling greater strategic recognition.
  

Insight from the World Gold Council:
“Gold might not be ‘critical’ by definition, but it’s strategic,” said Joseph Cavatoni, senior strategist. The broader shift away from dollar dominance could keep the spotlight on gold in the years ahead.

ECONOMIC CALENDAR PREVIEW: March 31 – April 4

Upcoming Reports:

• Tuesday, April 1:
  
  • S&P Final U.S. Manufacturing PMI
    
  • Construction Spending
    
  • ISM Manufacturing Index
    
  • JOLTS Job Openings
    
• Wednesday, April 2:
  
  • ADP Employment Report
    
• Thursday, April 3:
  
  • Initial Jobless Claims
    
  • S&P Final U.S. Services PMI
    
  • ISM Services Index
    
• Friday, April 4:
  
  • Employment Situation Summary – March Jobs Report
    

IMPACT ON PRECIOUS METALS MARKETS

• Manufacturing & Services Data (April 1 & 3):
  Strong activity may support the dollar and weigh on metals. Weaker numbers could renew demand for gold and silver as safe-haven assets.

• Construction Spending (April 1):
  Rising construction points to economic strength and could curb demand for inflation hedges. A downturn would likely support metals.

• JOLTS Report (April 1):
  High job openings may boost inflation expectations—potentially bearish for metals. A cooling labor market could help gold and silver find support.

• ADP Employment (April 2):
  Strong job growth might pressure metals by reinforcing higher-rate expectations. Weak results may do the opposite.

• Initial Jobless Claims (April 3):
  Fewer claims suggest labor resilience, which could limit gold’s upside. Higher claims may spur renewed buying.

• Jobs Report (April 4):
  The marquee report of the week. A robust labor market could challenge gold’s strength; a soft report might boost safe-haven flows into metals.
  

Continue Your Precious Metals Journey

Whether you’re watching price movements, analyzing global trends, or considering how to preserve your purchasing power, the case for holding physical gold and silver remains clear. Stay informed, stay grounded—and explore more insights on our website.

📞 Call Prime Asset Group at (866) 706-8781 for details on free shipping and insurance for all orders over $5,000.
🖥️ Visit us online to learn how physical gold and silver can serve as foundational assets in uncertain times.