Gold prices have been on a tear, with the precious metal hitting new record highs and drawing growing attention from investors and analysts alike. On Tuesday, U.S. trading saw gold prices soar above $2,950 per troy ounce, bringing it within striking distance of the psychological $3,000 mark. By 1:46 pm EST, the Comex Gold April contract had jumped 1.73%, adding $50.20 to reach $2,950.90. Meanwhile, spot trading in Dubai also saw strong gains, climbing 1.26% to $2,933.19.
This stunning rally follows a 24% surge in gold prices during 2024, largely driven by interest rate cuts from the U.S. Federal Reserve in the latter half of the year. Despite gold’s status as a non-yielding asset, investors have flocked to it as a safe haven amid rising global uncertainty, much like during the global financial crisis in 2008-09. Central banks have also increased their purchases of gold, further fueling the demand.
Goldman Sachs Raises 2025 Price Forecast
Wall Street is buzzing with predictions that gold’s rally could continue well into 2025, with some even forecasting prices surpassing $3,000. Goldman Sachs has raised its year-end gold price forecast for 2025 to $3,100 per ounce, up from a previous estimate of $2,890. The bank expects that structurally higher central bank demand, combined with growing ETF holdings as the funds rate declines, will push gold prices higher.
Goldman Sachs also revised its central bank demand projection upward to 50 tonnes per month, from its previous estimate of 41 tonnes. The bank believes this increased demand will outweigh the drag from normalizing investor positions, assuming global uncertainty begins to ease. However, if policy uncertainty remains high, particularly concerning tariffs, Goldman Sachs suggests that gold could surge to as high as $3,300 per ounce by the end of 2025, driven by speculative positions.
‘Go for Gold’—Goldman Sachs Stands Firm
Despite some potential risks, Goldman Sachs remains bullish on gold, reiterating its “go for gold” call. The bank advises investors to maintain long gold positions as a strong hedge, even if uncertainty decreases and causes a pullback in prices. Their outlook is based on the belief that demand will continue to outpace supply, keeping gold’s upward trajectory intact.
UBS Shares Optimism, But with Caution
While Goldman Sachs is among the most optimistic forecasters, UBS is also bullish, though more cautious about the potential for gold prices to exceed $3,000. UBS raised its year-end gold price target to $2,900, up from $2,800, and also increased its 2026 target to $2,900 from $2,850. The Swiss bank acknowledged that while chasing the market higher may be uncomfortable, it doesn’t make sense to call an end to the bull run just because gold has set another record.
Looking Ahead: Higher Targets on the Horizon
As the geopolitical and macroeconomic environment continues to fuel demand for safe-haven assets like gold, more Wall Street analysts are expected to revise their price targets upward. With central banks continuing to buy gold and geopolitical tensions lingering, the outlook for gold in the short to medium term remains positive.
While Goldman Sachs and UBS may differ in their ultimate price targets, both agree that gold’s bull run is far from over, and investors should be prepared for further price increases, potentially pushing the precious metal into uncharted territory.
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