Goldman Sachs, the prestigious Wall Street investment bank, has forecast gold prices could reach an unprecedented $3,000 per ounce by December 2025, citing increased central bank demand and anticipated US interest rate cuts as primary drivers.
The bank’s analysts, led by Daan Struyven, have positioned the precious metal as one of their top commodity trades for 2025. Their optimistic outlook stems from a combination of structural factors, particularly heightened central bank purchasing activity, coupled with cyclical influences such as increased exchange-traded fund (ETF) inflows amid Federal Reserve rate adjustments.
Currently trading at approximately $2,584 per ounce, gold has demonstrated remarkable strength throughout the year, reaching above $2,790 in recent weeks. The metal experienced a temporary decline following Donald Trump’s election victory, which strengthened the US dollar – traditionally a headwind for gold prices as it increases costs for international buyers.
The analysis suggests Trump’s presidency could significantly impact bullion prices. His policies might amplify geopolitical uncertainties and inflation concerns, potentially supporting gold’s value in the extended term. Michael Langford, chief investment officer at Scorpion Minerals, supports this view, noting that while Trump’s inauguration may initially boost the dollar, his policies could trigger inflation, ultimately benefiting gold.
Goldman’s commodity outlook extends beyond precious metals, projecting Brent crude to trade between $70 and $85 per barrel in 2025. The bank has also highlighted potential risks in agricultural commodities, particularly regarding US-China trade relations under Trump’s leadership, suggesting possible impacts on soybean and corn markets.
Recent market activity shows gold rebounding 1.2 per cent to $2,591.43 per ounce, recovering from a six-session decline. Market analysts attribute this recovery to a temporary pause in the dollar’s strengthening trend, though they anticipate increased volatility as the year concludes.
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