India, June 26 -- Bank of America has raised its outlook on gold, setting a much higher price target for next year. Right now, gold trades near $3,330 per ounce, up more than 40% over the past year.

The bank now expects gold to reach $4,000 per ounce in 2026. That would be about 20% higher than current levels. Gold has been rising sharply for three years now. This year alone, it has already gained 45%. In the two years before that, gold went up over 20% each year. Over the past decade, total returns on gold have reached 180%. The reasons behind this growth are well known.

There has been an increase in purchases of gold by central banks, and a rise in demand from investors. The changes in supply and demand have led to upward pressure on ...