Bank of America: Maintains 12-month gold price target of $6,000/oz; short-term pressure exists, but the medium-term bullish outlook remains unchanged.

According to Mars Finance, on May 26th, Michael Widmer, Managing Director and Head of Metals Research at Bank of America, stated that gold prices will face short-term pressure due to declining market expectations for a US interest rate cut. However, the bank maintains its bullish view on gold and reiterates its forecast of gold prices reaching $6,000 per ounce over the next 12 months. The current pressure on gold is related to the market's repricing of inflation risks and the US interest rate path amidst rising energy prices driven by the Middle East wars. Despite these pressures, gold is expected to continue rising, supported by continued gold purchases by central banks, a recovery in investor demand, and weakening economic growth indicators.