Bank of America on Friday raised its common gold worth forecast for the subsequent six years by 6% to $3,049 per ounce, citing President Donald Trump’s threats to undermine the Federal Reserve’s independence amongst different components. The Wall Street funding financial institution stated it stays bullish on gold, “with a short-/medium-term target of US$4,000/oz.” The financial institution left its near-term forecasts unchanged with gold forecast to hit $3,356 this yr and $3,659 subsequent yr. Gold is seen by traders as a safe-haven asset in instances of monetary and geopolitical instability. And Trump’s repeated assaults on the Federal Reserve are elevating concern in some corners of the market that the U.S. central financial institution’s capability to make unbiased financial choices is in danger. Gold futures have been on a tear this yr, gaining about 31% to just lately commerce at about $3,473. “In our view, conditions that have led to recent strength in gold prices look likely to persist,” Bank of America analysts led Jason Fairclough advised shoppers. “Namely: (1) U.S. structural deficit; (2) Inflationary pressure from deglobalization; (3) perceived threats to independence of the U.S. central bank; and (4) global geopolitical tensions & uncertainty.” Trump has sought to hearth Federal Reserve Board Governor Lisa Cook over allegations that she made false statements on mortgage purposes. He is the primary president to try to oust a Fed governor, in a transfer that Wall Street largely views as an try to achieve management over the central financial institution. If Trump is profitable and strikes shortly to identify a Cook alternative, he would have a path to consolidate a majority on the Fed board. This would probably give him the flexibility to reshape the Federal Open Market Committee and achieve extra affect over rate of interest choices. Trump’s decide to fill a emptiness on the Fed board, Stephen Miran, is scheduled for a listening to earlier than the U.S. Senate Banking Committee on Sept. 4. Fairclough and his staff additionally bumped their silver forecasts, lifting the typical silver worth 7.5% to $38 an oz..