Goldman Sachs has revised its 2025 gold price forecast to $3,700 per ounce, up from a previous estimate of $3,300. The investment bank has projected a price range of $3,650 to $3,950 per ounce, driven by higher-than-expected demand from central banks and increased inflows into gold-backed exchange-traded funds (ETFs), as recession concerns continue to build, according to Reuters.
The bank’s latest forecast reflects a growing sense of caution in global markets. In a note issued Friday, Goldman Sachs indicated that if a recession materializes, ETF inflows could accelerate further, potentially pushing gold prices to $3,880 per ounce by the end of the year. However, the bank cautioned that should political uncertainty decrease, ETF inflows might return to more typical levels, bringing gold prices closer to $3,550 per ounce by year-end.
Goldman Sachs also raised its estimate for central bank gold purchases to 80 metric tons per month, up from the previous forecast of 70 tons.
Spot gold prices surged to a new record high on Monday, reaching $3,245.42 per ounce, though the market struggled to gain clear direction as traders processed the ongoing tariff developments.
In related news, the White House announced that smartphones and computers will be exempt from “reciprocal” U.S. tariffs, though President Donald Trump warned that additional tariffs are still likely in the future.
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