Gold might face tailwinds with all the negative geopolitical developments happening in the world right now. While gold has been on a tear this year, rising over 20% and breaking all-time highs several times, analysts believe that it might even go higher in the current context.

Bank of America has been one of these institutions that is especially bullish about the future of gold. In a note shared last week, the bank’s experts stated that there is a path for gold to reach $4,000 per troy ounce in the upcoming 12 months.

Bank of America stated that the rally might continue as rate volatility and a weaker dollar continue to support the flight to safe-haven assets by investors. The bank also stated that, while gold prices have risen, investors are still underexposed to gold.

“We estimate that investors have allocated 3.5% of their portfolios… still short of the all-time highs in 2011,” Bank of America assessed, hinting at the possibility of more capital being allocated by individual investors as the rally continues.

In the same way, while central banks have certainly increased their gold exposure during the last years, the bank note states that they hold close to 18% in gold, down from their all-time high during the 1970s Bretton Woods era.

Nonetheless, according to the European Central Bank (ECB), gold is currently the second reserve asset held by central banks after the U.S. dollar.

Another key driver might come from geopolitical developments, including the recently sparked Israel-Iran conflict. In the wake of the first bombings, gold futures rose to $3,440, edging their record prices of $3,500. Oil futures also surged due to the implications of a conflict escalation.

Previously, JPMorgan had envisioned a path for $6,000 gold that encompassed a shift of 0.5% of the U.S.’s foreign assets to the yellow metal.

Read more: Gold Climbs, Oil Surges, Stocks and Bitcoin Slide Amid Israel-Iran Conflict

Read more: JPMorgan: Gold Could Reach $6,000 if This Shift Happens

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