Analysts at Goldman Sachs say gold could hit the target of $3,000 an ounce by December 2025.
Although gold prices touched all-time highs in October before pulling back modestly, Goldman Sachs Group said central bank purchases and a cut in US interest rates will push prices for the precious yellow metal to a record next year.
Goldman Sachs Group Inc has listed gold among the top commodity trades for 2025 and said prices could rise during Donald Trump’s presidency.
“Go for gold,” analysts including Dan Struven said in a note, reiterating a target of $3,000 an ounce by December 2025. The structural driver of the forecast is higher demand from central banks, while the cyclical lift will come from flows in the exchange. Traded funds as the Federal Reserve cuts, they said.
Gold was trading 0.85 percent higher at $2,585.2 an ounce in the international market on Monday. Silver price also increased by 1.36 percent to $30.70 per ounce.
Gold has experienced a strong rally this year before pulling back slightly following Donald Trump’s White House victory, which bolstered the dollar. Increased purchases by central banks and the Federal Reserve’s shift toward looser monetary policy have fueled the boom. Analysts at Goldman Sachs noted that the Trump administration could further boost gold’s appeal.
“An unprecedented increase in trade tensions could revive speculative positions in gold,” they said. Additionally, concerns about the sustainability of US fiscal policies could provide further support to gold prices. Central banks, especially those holding significant US Treasury reserves, can raise their prices. Gold holdings, analysts add.
In other markets, Brent crude prices are expected to hover between $70 and $85 per barrel next year. However, short-term upside is likely if the Trump administration intensifies efforts to restrict Iran’s oil exports. Base metals remain more favorable than ferrous metals, while European gas markets may face short-term price increases due to weather-related factors.
“The new US administration increases the risks for Iran supplies,” the analysts highlighted, pointing to the possibility of the implementation of stricter sanctions under the maximum pressure campaign. They also noted that “the possibility of a possible strengthening of US support for Israel may increase. Disruption of Iran’s oil assets.”