Goldman Sachs Projects Gold to Reach $3,150 per Ounce by 2025

Goldman Sachs expects gold prices to reach $3,150 per ounce by December 2025, signifying an increase of approximately 19% from current levels due to its continued status as a good hedge against sticky inflation and rising geopolitical concerns. According to Goldman Sachs, a significant portion of this price increase will stem from strong demand from global central banks, alongside concerns about U.S. fiscal sustainability and trade tensions/conflicts.

Analysts led by Daan Struyven, head of commodity research at Goldman Sachs, stated, "We maintain our $3,000 forecast for December 2025. The structural driving force behind our increasing gold forecast is higher demand from central banks, which adds 9% to the gold price forecast by December 2025 compared to our previous estimate of $2,640 made in November."

Goldman Sachs noted that rising fears regarding inflation and fiscal risks could boost speculative positioning and equity fund flows (ETFs), while concerns about U.S. debt sustainability may encourage central banks—especially those with large U.S. Treasury reserves—to acquire more gold.

Struyven added, "While the support from central bank demand has outweighed the effects stemming from the high interest rates at the end of 2022 and the beginning of 2023, we see potentially higher interest rates and a stronger dollar as major downward risks to our bullish gold forecast."