Bank of America predicts gold prices to soar above $2400/oz due to potential oil shock

Bank of America analysts predict that gold will shine in the summer of 2024, with prices potentially reaching $2,400 per ounce if the Federal Reserve cuts rates earlier than expected. While geopolitical factors like the conflict in the Middle East have boosted gold in the short term, the analysts believe that rates remain the key driver for gold prices. They also highlight the potential impact of armed conflicts on gold prices through its relationship with oil, suggesting that if a broadening regional conflict damages Middle East energy infrastructure, gold could rally to all-time highs.