Goldman Sachs Forecasts Gold Prices Could Soar to $3,300 per Ounce by End of 2025

Goldman Sachs predicts that gold prices could reach $3,300 per ounce by the end of 2025 if policy uncertainties, including concerns over tariff wars, remain high.

However, in a more stable market environment, gold is expected to settle at around $3,100 per ounce, which is still higher than the previous forecast of $2,890 per ounce.

This price increase is driven by structurally higher central bank demand, which could push gold prices up by 9% throughout the year. Additionally, a gradual increase in ETF holdings, fueled by interest rate cuts, is also expected to support gold prices.

Central Bank Demand Could Push Gold Prices Even Higher

Goldman Sachs has revised its central bank demand estimate to 50 tons per month, up from the previous forecast of 41 tons. If central banks purchase an average of 70 tons per month, gold prices could climb to $3,200 per ounce by the end of 2025, assuming speculative positioning normalizes.

On the other hand, if the Federal Reserve maintains high interest rates, Goldman Sachs projects that gold will only reach $3,060 per ounce over the same period.

Reiterating its "Go for Gold" recommendation, Goldman Sachs stated that while a decline in uncertainty could lead to short-term price corrections, gold remains a strong hedge against potential trade tensions, Federal Reserve policy risks, and financial instability or recession.

Furthermore, if concerns over US fiscal sustainability increase, gold prices could see an additional 5% surge to $3,250 per ounce by December 2025.

Inflation fears and fiscal risks may drive more speculative positions and ETF inflows, while rising concerns over US debt sustainability could prompt central banks to increase their gold reserves, particularly those heavily invested in US Treasury bonds.

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