Goldman Sachs raises gold price forecast to $3,100/ounce
Goldman Sachs has just raised its forecast for gold prices by the end of 2025 to $3,100 an ounce, up from $2,890 previously. The main reason is that demand for gold from central banks remains high.
According to Goldman Sachs, continued gold purchases by central banks could push gold prices up another 9% by the end of the year. In addition, as interest rates fall, ETFs (gold investment funds) will gradually increase their holdings of gold, contributing to the increase in gold prices.
However, if policy uncertainties, such as tariff concerns, persist, gold prices could even surge to $3,300 an ounce by the end of 2025 as speculators continue to pour money into gold.
Goldman Sachs also raised its forecast for central banks’ monthly gold purchases to 50 tonnes, up from 41 tonnes previously. If that figure averages 70 tonnes per month, gold prices could hit $3,200 an ounce by the end of 2025.
Conversely, if the US Federal Reserve (Fed) keeps interest rates unchanged, Goldman Sachs predicts gold prices will reach $3,060/ounce over the same period.
Goldman Sachs also emphasized that investing in gold remains a safe option, especially in the context of possible trade tensions, risks from Fed policy, or the risk of economic recession. These factors could push gold prices to the highest level in Goldman Sachs' forecast.
Additionally, if concerns about the US government’s ability to repay its debt increase, gold prices could rise another 5% to $3,250 an ounce by December 2025. Concerns about inflation and fiscal risks could also spur speculators and ETFs to buy more gold, while also prompting central banks, especially those with large US bond holdings, to increase their gold purchases to diversify their reserves.
