Goldman Sachs raises its gold price forecast to $3,100 per ounce.
Goldman Sachs has just raised its gold price forecast for the end of 2025 to $3,100 per ounce, up from the previous forecast of $2,890. 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 by another 9% by the end of the year. Additionally, as interest rates fall, gold ETFs will gradually increase their gold holdings, further supporting higher gold prices.
However, if policy uncertainties, such as concerns about tariffs, persist, the price of gold could even surge to $3,300 per ounce by the end of 2025 as speculators continue to pour money into gold.
Goldman Sachs also raised its forecast for the amount of gold central banks will buy each month to 50 tons, compared to the previous 41 tons. If this figure averages 70 tons per month, the price of gold could reach $3,200 per ounce by the end of 2025.
Conversely, if the US Federal Reserve (Fed) keeps interest rates unchanged, Goldman Sachs predicts the price of gold will reach $3,060 per ounce during the same period.
Goldman Sachs also emphasized that investing in gold remains a safe option, especially in the context of potential trade tensions, risks from Fed policy, or the risk of an economic recession. These factors could push gold prices to the highest levels in Goldman Sachs' forecast.
Furthermore, if concerns about the US government's ability to repay its debt increase, the price of gold could rise by another 5%, to $3,250 per ounce by December 2025. Concerns about inflation and fiscal risks could also prompt speculators and ETFs to buy more gold, and encourage central banks, especially those holding large amounts of US bonds, to increase their gold purchases to diversify their reserves.
