According to Bank of America, if the Federal Reserve cuts interest rates tomorrow, as the market expects, gold should be the winner. The Fed is poised to cut the costs of money despite the stubbornly high inflation at 2.9% per year in August. In the past quarter century, gold has not lowered prices as central banks surpass their 2% target and facilitate monetary policy, according to product analysts at Bank of America. “In fact, even ignoring the global financial crisis, Gold has returned about 13% per year during ‘inflation easing’,” an analyst led by Michael Widmer told clients in a report Monday. Bank of America will see Gold reach $4,000 per ounce in 2026. Gold futures won over 40% in 2025 alone, reaching $3,729 per ounce in the middle of Tuesday. Gold also sees strong demand from central banks and now holds more valuable metals than the US, analysts say. Global financial authorities are increasingly worried about FRED independence under President Donald Trump. At the same time, the US dollar thwarted more than 10% against a basket of currencies of major trading partners in 2025. (Learn the best 2026 strategies from within NYSE with Josh Brown and others on CNBC Pro Live. Tickets and info here.)
