Economics
Gold Set to Soar Above $1,300, Bank of America Says
- Growing fiscal gap is viewed as ‘pretty positive’ for bullion
- Follows Ray Dalio comments on U.S. two years from downturn
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Gold is set to surge over the next year as concerns deepen about the widening U.S. budget deficit and a tariff-driven trade war starts to damage the country’s economy, according to Bank of America Merrill Lynch.
Bullion could average $1,350 an ounce in 2019 as corporate tax reforms worsen the U.S. fiscal balance, Francisco Blanch, head of global commodities and derivatives research, said in a phone interview last week. Spot gold traded at $1,198.82 on Monday and has averaged about $1,285 this year.