BNP Paribas analysts have issued a striking long-term forecast for gold, projecting the precious metal could reach USD 5,000 per ounce within a 12-month horizon.
The bank argues that a combination of record global debt levels and a weakening US dollar creates a structural bull market for the yellow metal, offering significant upside potential for investors positioned for a sustained rally.
The bullish outlook comes as gold prices have already extended a recovery from recent lows, closing higher on Friday.
The recent price action was supported by a softening US dollar and declining yields on US Treasury bonds, as investors rotated into safe-haven assets amid broader risk aversion.
BNP Paribas contends that these macroeconomic drivers are not transient but reflect a deeper shift in the global financial landscape, where sovereign debt burdens are forcing central banks and investors to seek alternatives to fiat currency.
While the US dollar recently surged to near yearly highs driven by a broad wave of risk aversion, BNP Paribas maintains that the greenback's long-term trajectory is downward.