Goldman Sachs Updates Gold Price Forecast for 2025
Goldman Sachs has revised its forecast for gold prices, predicting they will reach $3,100 per ounce by the end of 2025, an increase from the previous estimate of $2,890. This adjustment is attributed to sustained demand from central banks.
The bank’s analysis indicates that the heightened structural demand from central banks is expected to elevate gold prices by approximately nine percent by the close of this year. This uptrend is anticipated to coincide with a gradual strengthening of gold holdings amid prevailing low-interest rates.
However, the forecast is not without caveats. Should political uncertainties, including customs duties, remain significant, Goldman Sachs suggests that gold could ascend to $3,300 per ounce by year-end.
Additionally, the bank has increased its expectations for central bank demand, projected to rise to 50 tons per month, up from the earlier estimate of 41 tons. If the average purchases reach 70 tons monthly, it may result in gold prices soaring to $3,200 per ounce by the end of 2025.
In contrast, if the Federal Reserve maintains its current interest rates, Goldman Sachs predicts gold prices could stabilize around $3,060 per ounce during the same timeframe.
Reiterating its recommendation to invest in gold, Goldman Sachs acknowledges that while a reduction in uncertainty could produce a tactical decline in prices, holding gold continues to be a robust hedge against economic volatility.
