Goldman Sachs has raised its gold price forecast to $3,300 an ounce by the end of 2025, up from its previous target of $3,100 announced just last month.
Analysts at the bank attribute the upgrade to stronger-than-expected central bank buying, particularly from emerging market countries. They now estimate average monthly purchases of around 70 tonnes, up from an earlier projection of 50 tonnes. This sustained demand from official sector buyers has become a key support for the market.
In addition to central bank activity, Goldman points to steady inflows into gold-backed exchange-traded funds (ETFs). Investors have sought gold as a hedge amid ongoing economic and geopolitical uncertainty, a trend that has bolstered physical and paper demand. Gold has already gained about 15% year to date and recently breached the $3,000-per-ounce level for the first time.
The bank’s revised view reflects a combination of stronger demand and limited near-term supply response. While mine production and recycling will continue to contribute to supply, they are unlikely to offset the increased official and investment demand quickly. As a result, the market could remain tight, supporting higher price levels through 2025.
Gold’s role as a portfolio diversifier and safe-haven asset remains central to this outlook. With uncertainties around trade policy and broader geopolitical tensions, institutional and retail investors have been reallocating capital into metal exposures. That dynamic, along with central bank accumulation, underpins Goldman Sachs’s more bullish medium-term forecast.