Goldman Sachs has raised its gold price forecast for the third time in 2025, now projecting that the price of gold could reach $3,700 per ounce by the end of the year. This forecast represents a 41% increase from January 1, when gold was priced at $2,623 per ounce.
In a more extreme scenario, Goldman Sachs predicts that gold could surge to $4,500 per ounce by the end of 2025, marking a staggering potential return of 71.5%. As of today, gold is trading at $3,200 per ounce, having gained 22% so far this year. In India, the price of gold stands at ₹93,280 per 10 grams.
Earlier this year, Goldman Sachs had predicted that gold would reach $3,100 by the end of 2025, and even lower estimates suggested $2,890. However, the firm’s recent upgrades reflect a shift in sentiment, driven by escalating concerns over the U.S. economy and the ongoing trade tensions between the U.S. and China. These factors have made gold increasingly attractive as a hedge against recession.
Gold is emerging as the preferred investment in the current economic climate. The increasing likelihood of a U.S. recession has led to a surge in demand for gold, both through exchange-traded funds (ETFs) and physical purchases. The precious metal tends to outperform during periods of global uncertainty and risk, further boosting its appeal.
Analysts believe that the rally in gold prices is likely to continue throughout 2025, driven by both central bank purchases and heightened investor interest. Despite the overall upward trend, occasional short-term profit-taking in gold cannot be ruled out.
A key driver for gold’s price movement in 2025 is expected to be potential rate cuts by the U.S. Federal Reserve, which would likely make gold more attractive compared to other assets. Additionally, a rise in the selling of U.S. Treasuries could send bond yields higher, signaling a shift away from traditional safe-haven assets. In such a scenario, gold could see a new influx of buyers, pushing its price even higher.
Overall, unless the factors driving gold’s ascent change dramatically, the outlook for the yellow metal remains bullish, with many analysts predicting continued gains in 2025.
Related topics：
- What is the Value of 18K Gold?
- Why Does Gold Price Increase During War?
- What is the Best Price Being Paid for Gold Sovereigns?
