Bank of America Raises Gold and Silver Forecasts to $5,000 and $65 per Ounce: Precious Metals Rally in 2025

In the uncertain economic landscape of October 2025—marked by U.S.-China trade tensions and crypto's rebound from the $19 billion liquidation crash—Bank of America has issued bullish revisions to its precious metals outlook, projecting gold to average $4,400 per ounce with peaks at $5,000, and silver at $56 per ounce, potentially hitting $65. This upward adjustment, detailed in the bank's latest market update, underscores gold and silver's enduring role as safe-haven assets amid global volatility, potentially influencing crypto hedging strategies where tokenized metals serve as DeFi bridges.

The Forecast Breakdown: Bullish Drivers Amid Imbalances

Bank of America's analysis highlights gold's resilience as a hedge against inflation and geopolitical risks, with the $5,000 peak reflecting sustained demand from central banks and investors fleeing fiat uncertainties. Silver's forecast, while optimistic, warns of extreme physical market imbalances—supply shortages in industrial uses like solar panels and electronics—that could drive sharp volatility as equilibrium restores. Current spot prices hover at $2,650 for gold and $31 for silver, implying 88% and 110% upside, respectively, per the bank's models. This comes as U.S. tariffs threaten supply chains, boosting metals' appeal over riskier assets like equities.

• Gold Projection: $4,400 average; $5,000 high—driven by ETF inflows and reserve buying.
• Silver Projection: $56 average; $65 high—tied to industrial demand and deficit normalization.
• Market Context: Physical silver's "extreme imbalance" risks swings; gold's safe-haven status intact.

Implications for Crypto and Investors in 2025

These forecasts align with crypto's macro sensitivity: As BTC stabilizes at $115,000 and ETH at $4,100, rising metals prices could accelerate tokenized RWA adoption, with platforms like Securitize's BUIDL fund ($2.8B AUM) offering 4-6% yields backed by treasuries. For DeFi users, gold/silver-pegged stables hedge volatility, potentially drawing $5-10 billion inflows. Risks? Tariff escalations could spike costs 20%, but Bank of America's optimism signals a broader commodities bull, benefiting BTC as "digital gold."

• Crypto Tie: Tokenized metals on Aave for stacked yields; RWA TVL up 150% YTD.
• Investor Angle: Diversify 10-20% into metals ETFs; watch November deadlines.

Trading Guide: Positioning for the Metals Surge

Gold futures: Batch $2,650-2,600 dips, avg $2,625, 3% stop, target $2,800. Silver: Light longs above $31 for $35; hedge stables. In crypto, pair with BTC spot on compliant DEXs.

In summary, Bank of America's $5,000 gold and $65 silver calls spotlight precious metals' 2025 rally—secure via multi-sig wallets, ladder buys on RWA platforms, and monitor tariffs. In trade war turbulence, metals (and their crypto twins) shine brightest.