Bank of America Backs Gold Miners Despite 14% Cut to 2026 Gold Forecast

2 articles · Updated · Kitco NEWS · Jul 13

Bank of America kept a bullish long-term stance on precious metals even after cutting its 2026 average gold price forecast 14% to $4,360 an ounce.
Three expected Fed rate hikes this year drove the downgrade, with the bank saying tighter financial conditions could pressure gold near term and push investors out of crowded, expensive equities.
Gold miners still stand out because free cash flow is 10 times 2020 levels, earnings yields lead all sectors at 12%, and metals equities trade at a 19% discount to net asset value.
That mix of stronger balance sheets, record margins and low 10-year correlations to equities and bonds led BofA to rank mining shares among its top undervalued sectors alongside fixed income, banks and Latin American stocks.