Bank of America has been bullish gold for the best part of two years and first published their $3,000/oz price target in June 2024, which places them in the perfect spot to explain the nuances of the current and intensifying market dislocations occurring with the precious metals trading environment.
Since their initial bullish forecast, gold has posted a series of record highs and they remain constructive. That said, the action has not been just in flat prices; other segments of the market have also seen significant volatility.
This is reflected in Exhibit 1 and Exhibit 2 below, which show sharp increases in lease rates and exchange for physicals.
