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As the summer winds down, investors are keeping a close eye on the precious metals market. August proved to be a stellar month for both gold and silver, with gold prices rising a solid 3.5% and silver not far behind at 3.2%.

But what does the future hold? Well, according to Bank of America, the outlook is positively golden. In a recent note to clients, the bank stated, “We believe gold can hit $3,000/oz over the next 12-18 months…”. That’s a nice 20% move up from here. If silver holds its 3x typical ratio, that’s $50 silver, which we wrote on two weeks back.

Speaking of Bank of America, strategists have a bold prediction for investors: commodities are the way to go for the rest of the 2020s. In a recent note, they argue that a “commodity bull is just starting” due to a structural rise in inflation. “Commodities are a better bet than bonds for the rest of the 2020s.”

However, it’s not all smooth sailing ahead. Geopolitical tensions are heating up, and investors would be wise to keep a close watch on Turkey. So far this year, Turkey has purchased nearly 50 metric tonnes of gold, likely as a strategy to protect itself amid rising inflation and its recent application to join BRICS. This unique position—being a NATO member while also seeking ties with BRICS—adds an intriguing twist to the geopolitical chess game.

In the end, August proved that precious metals are still a force to be reckoned with. And with central banks doubling their net buying from June to a whopping 37 metric tonnes in July, it’s clear that the big players are still bullish on gold. So, keep your eyes peeled for more glittering gains in the months ahead.

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