Bank Of America Just Dropped Jaw-Dropping Forecasts: Silver At $65, Gold At $5,000 In 2026

Bank of America just stunned Wall Street with a new bold call on precious metals, raising its 2026 forecasts for gold to $5,000 per ounce and silver to $65, citing a potent mix of supply tightness, policy uncertainty, and a surge in investment demand that’s showing no signs of slowing.

On Monday, the bank’s commodity research team, led by Michael Widmer, stated that both precious metals have room to run higher despite near-term risks, particularly as investors scramble for safe havens amid ongoing U.S. fiscal imbalances and a shifting macroeconomic backdrop under the Trump administration.

Why Gold Could Keep Surging To $5,000 And Beyond: Bank Of America

Bank of America stated that a 14% increase in gold investment demand in 2026 could push prices to $5,000 or higher.

And the numbers back it up: ETF inflows into funds like SPDR Gold Shares (NYSE:GLD) and iShares Gold Trust (NYSE:IAU) soared 880% year-over-year in September, totaling $14 billion, a level never seen before.

To put that into context, gold investment demand now represents over 5% of global equity and bond markets, up from just 2.8% two years ago. That shift is seismic, and it suggests that institutions are positioning for a world where monetary policy might remain looser for longer.

Yet, BofA doesn't deny short-term risks. A hawkish Fed pivot, a surprise ruling on Trump’s trade policies or a dramatic shift in Congress after the midterms could rattle markets.

Still, even with those risks, the underlying message is clear: The macro backdrop still favors gold.

And if ETF flows rise another 28%, the bank says we could even see a path to $6,000 — though they admit that's "a tall order."

“The White House’s unorthodox policy framework should remain supportive for gold given fiscal deficits, rising debt, intentions to reduce the current account deficit/capital inflows, along with a push to cut rates with inflation around 3%,” Widmer said.

Silver's Supply Squeeze Isn’t Going Away

Silver – as tracked by the iShares Silver Trust (NYSE:SLV) – is a different beast, but the bull case is just as compelling.

Even though BofA expects total silver demand to fall 11% in 2026 — mainly due to reduced use in solar panels — the metal will likely remain in deficit for a fifth consecutive year. That's because mining supply can't keep up.

Technology is also playing a role. The solar industry is shifting to TopCon panels, which use less silver than the older PERC models. At the same time, China accelerated solar installations in 2025 to benefit from policy changes, pulling forward some of that demand.

But the real kicker for silver comes from tightness in the physical market, where BofA highlighted extreme dislocations. "A transfer of ounces to New York in anticipation of tariffs that did not materialise has tightened the London market materially, reflected in sharply higher lease rates," it said.

Lease rates in London spiked last week, a sign that supply is tight and the market is not functioning properly.

While some of these disruptions may fade, the bank warns they could create whipsaw price moves, especially if demand surprises to the upside.

“We see the risk of a correction near-term, but still expect further upside in 2026, with gold and silver potentially rising to $5,000/oz ($4,400 average) and $65/oz ($56.25/oz average), respectively,” Bank of America said.

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