Goldman Sachs Group Inc. has lifted its gold price forecast to $3,300 an ounce by the end of 2025, citing intensified central bank demand and increased interest in bullion-backed exchange-traded funds (ETFs).<\/p>\n\n\n\n
This marks a notable shift from the bank\u2019s previous forecast of $3,100, issued just last month. Analysts Lina Thomas and Daan Struyven pointed to monthly central bank purchases averaging 70 tons this year\u2014up from the prior estimate of 50 tons\u2014as a key driver behind the upgrade.<\/p>\n\n\n\n
The analysts highlighted that between November and January, central banks collectively bought around 190 tons of gold per month. They expect China to continue accumulating at a \u201crapid pace\u201d for at least the next three years.<\/p>\n\n\n\n
\u201cCentral banks \u2014 particularly in emerging markets \u2014 have increased gold purchases roughly fivefold since 2022, following the freezing of Russian reserves,\u201d Thomas and Struyven wrote. \u201cWe view this as a structural shift in reserve management behavior, and we do not expect a near-term reversal.\u201d<\/p>\n\n\n\n
Gold prices have risen 15% this year, surpassing the $3,000 mark for the first time. The rally has been fueled by the Federal Reserve\u2019s monetary easing and heightened economic uncertainty triggered by President Donald Trump\u2019s trade and foreign policy actions.<\/p>\n\n\n\n
Inflows into gold ETFs have outpaced expectations, with analysts noting a return of investor demand for safe-haven assets. Goldman Sachs maintains its forecast of two rate cuts from the Fed in 2025, reinforcing gold\u2019s appeal as a hedge.<\/p>\n\n\n\n
\u201cWhile ETF flows generally track Fed policy rates, history shows they can overshoot during extended periods of macro uncertainty \u2014 such as during the Covid-19 pandemic,\u201d the analysts said. If ETF holdings climb to levels seen in 2020, prices could reach as high as $3,680 an ounce by the end of this year.<\/p>\n","protected":false},"excerpt":{"rendered":"
Goldman Sachs Group Inc. has lifted its gold price forecast to $3,300 an ounce by the end of 2025, citing intensified central bank demand and increased interest in bullion-backed exchange-traded funds (ETFs). This marks a notable shift from the bank\u2019s previous forecast of $3,100, issued just last month. Analysts Lina Thomas and Daan Struyven pointed<\/p>\n","protected":false},"author":5,"featured_media":6359,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[3699,3703,3700,356,397,153,3704,3701,3159,3702],"class_list":{"0":"post-6358","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-bullion-backed-etfs","9":"tag-central-bank-demand","10":"tag-china-gold-reserves","11":"tag-donald-trump","12":"tag-federal-reserve","13":"tag-global-economy","14":"tag-gold-price-forecast","15":"tag-goldman-sachs","16":"tag-monetary-easing","17":"tag-safe-haven-asset"},"_links":{"self":[{"href":"https:\/\/guardianglobe.org\/index.php?rest_route=\/wp\/v2\/posts\/6358"}],"collection":[{"href":"https:\/\/guardianglobe.org\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/guardianglobe.org\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/guardianglobe.org\/index.php?rest_route=\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/guardianglobe.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=6358"}],"version-history":[{"count":1,"href":"https:\/\/guardianglobe.org\/index.php?rest_route=\/wp\/v2\/posts\/6358\/revisions"}],"predecessor-version":[{"id":6360,"href":"https:\/\/guardianglobe.org\/index.php?rest_route=\/wp\/v2\/posts\/6358\/revisions\/6360"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/guardianglobe.org\/index.php?rest_route=\/wp\/v2\/media\/6359"}],"wp:attachment":[{"href":"https:\/\/guardianglobe.org\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=6358"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/guardianglobe.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=6358"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/guardianglobe.org\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=6358"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}