Despite a recent pullback in prices, Goldman Sachs has raised its gold forecast to $3,100 per troy ounce by the end of 2025, reflecting roughly an 8% increase from current levels.
The firm’s bullish outlook is largely driven by robust central bank buying. Since the freezing of certain Russian assets in 2022, many countries have accelerated efforts to diversify and rebuild reserves, increasing demand for physical gold.
Gold ETFs are also expected to add support as interest rates decline. Lower rates tend to make gold more attractive as an allocation alternative, encouraging greater inflows into exchange-traded funds backed by bullion. That said, a potential reduction in speculative positions could temper some gains, leaving the market balance dependent on both institutional demand and investor sentiment.
Gold’s price trajectory will remain sensitive to broader economic and geopolitical conditions. If global uncertainty persists or intensifies, Goldman Sachs says prices could rise further, reaching as much as $3,300 per troy ounce under a higher-risk scenario.
In summary, the bank’s revised forecast rests on two main pillars: sustained central bank purchases and renewed investor interest in gold-backed ETFs as monetary policy eases. These factors, together with ongoing geopolitical risks, form the basis for the upgraded price outlook through the end of 2025.