Gold prices have indeed soared to all-time highs in 2025, prompting headlines about a historic rally. But according to Bank of America (BofA) Global Research, the story is more nuanced: The gold sector, while booming, hasn’t returned to all of the metrics that defined previous cyclical peaks, especially regarding its value relative to the broader equity market and its own historical valuations.
This year, gold surged past major thresholds, as the traditional hedge against inflation and macroeconomic uncertainty has been propelled by a preponderance of both. On September 2, gold shot past $3,500/oz, climbing further to $3,600/oz on the Monday following the disappointing U.S. jobs data for August, which raised bets on easier monetary policy. The BofA Commodities team is “bullish,” they say, now forecasting the quarterly average price reaching $4,000/oz in the second quarter of 2026, with the spot price already up 4.1% week-over-week to $3,589/oz.
