Bank of America says that gold is poised to shine, as it's a great hedge against stubborn inflation. Jared Woodard is the firm's exchange-traded fund and investment strategist. He said that gold was "that rare thing, a non-correlated anti-stagflation hedging." Gold is a good investment for times when financial assets have negative returns. The Wall Street firm began coverage of gold on Wednesday with a "favorable view." Gold is a strong asset that has no correlation with stocks, according to the strategist. It's also resistant to stagflation. Investors sought safety in a weakening economic climate, and gold futures rose more than 8% to reach $2,000 per ounce. Bank of America stated that the precious metal is becoming increasingly attractive as the opportunity costs of financial assets drop. Woodard stated that gold's anti-speculative nature is an advantage when corporate profits are declining, bonds are overpriced and cash lags inflation. Major currencies are also losing value. Gold prices rise when the cost of not investing in stocks and bonds are low. Bank of America has highlighted five bullion fund options: iShares Gold Trust Micro, SPDR Gold MiniShares Trust, abrdn Gold shares ETF (SGOL), iShares Gold Trust and SPDR Gold Shares. The two funds with the highest ratings are GLDM & IAUM. The strategist stated that these "mini" funds are cheaper than their peers but still have the same fundamentals as gold bullion. Michael Bloom, a CNBC contributor, contributed to this article.