Goldman Sachs has revised its gold price forecast, raising the target for year-end to $3,100 per ounce, up from last month’s prediction of $3,000. This new forecast reflects a more than 6.5% increase compared to the current price of gold. Analysts Lena Thomas and Dan Stroeven suggest that demand for gold from central banks could average 50 tons per month, exceeding previous expectations.
The firm explained that if economic policy uncertainties persist, including the imposition of tariffs by the United States, speculative demand could surge. Alongside this, central banks’ gold purchases and inflows into exchange-traded funds (ETFs) could drive the price even higher. Goldman Sachs even noted that in such a scenario, gold prices could potentially rise to $3,300 per ounce, marking a 26% increase for the year.
Reasons Behind the Gold Price Surge
Gold prices have surged for seven consecutive weeks this year, continuing the momentum seen in 2024. Analysts attribute this rise to several key factors: increased gold purchases by central banks, a series of interest rate cuts by the U.S. Federal Reserve, and investor unease over President Donald Trump’s tariff policies.
As of now, gold is trading around $2,911 per ounce, up 0.47% since the start of the trading day. The price briefly surpassed $2,942 per ounce last week.
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