Amid ongoing global trade tensions, especially following retaliatory tariffs from former U.S. President Donald Trump, the gold price forecast has taken a bullish turn. Investment bank Goldman Sachs now predicts that gold could reach $3,700 per ounce by the end of 2025 — a significant revision from its earlier forecast of $3,300.
According to Goldman Sachs, gold prices may fluctuate between $3,650 and $3,950, depending on macroeconomic conditions. If a global recession occurs, the gold price forecast suggests prices could even soar to $3,880 per ounce, as reported by Reuters.
One of the key drivers behind this potential increase is the rising demand for gold-backed Exchange-Traded Funds (ETFs) and central bank reserves. The bank emphasized that growing interest in gold from institutional investors and governments is fueling the rally.
However, Goldman Sachs has also issued a cautionary note: if global economic stability is restored and policy uncertainty diminishes, investor interest in gold ETFs may not meet current expectations. In that case, gold prices could be capped at around $3,550 per ounce.
Data shows that global central banks are projected to demand an average of 80 metric tons of gold per month this year, up from 70 metric tons in the previous year. According to the World Gold Council, a total of 4,974 tons of gold were traded globally last year. Poland’s central bank alone purchased 90 tons, the highest single purchase recorded during the year.
As of now, GoldPrice.org reports that the current global price of gold has slightly dipped to $3,315 per ounce, reflecting a minor drop of less than one dollar. Over the past month, gold prices have increased by $279, while the year-on-year gain stands at a significant $926.