Gold is expected to hit record levels next year, driven by central bank purchases and anticipated interest rate cuts in the U.S., according to Goldman Sachs.
The investment bank included gold as one of its top commodity picks for 2025, forecasting prices could reach $3,000 per ounce by December 2025.
Goldman analysts, including Daan Struyven, highlighted the long-term support for gold prices from growing central bank demand, with a cyclical boost expected from flows into exchange-traded funds (ETFs) as the Federal Reserve cuts interest rates.
This year, gold has experienced a significant rally, reaching new highs before pulling back after Donald Trump’s election win, which initially strengthened the dollar. The rally has been fueled by increased buying from central banks and the Fed’s shift towards a more accommodative monetary policy. Goldman also suggested that a Trump administration could further support gold prices.
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Rising trade tensions and concerns over the sustainability of U.S. fiscal policy could reignite investor interest in gold, particularly among central banks holding large U.S. Treasury reserves. These factors could drive more official-sector purchases of gold.
Spot gold was recently priced at around $2,584 an ounce, after briefly surpassing $2,790 last month.
In addition to gold, Goldman Sachs also projected that Brent crude oil would trade between $70 and $85 per barrel in 2025, with potential short-term gains if the Trump administration intensifies sanctions on Iran. The bank also favored base metals over ferrous metals and noted potential short-term upside risks for European natural gas prices due to weather conditions.