Goldman Sachs now targeting $2,900 an ounce by early 2025 on rising ETF flows, interest rate cuts.
Goldman Sachs this week raised its gold price target to $2,900, up from $2,700 an ounce, for early 2025.
“We reiterate our long gold recommendation due to the gradual boost from lower global interest rates, structurally higher central bank demand and gold’s hedging benefits against geopolitical, financial and recessionary risks,” according to a note from bank analysts.
Gold prices surpassed $2,700 an ounce on an intraday level last week, but have recently been trading around the $2,650 an ounce mark.
The bank is targeting an average price of $2,973 an ounce across all of 2025.
Analysts expect about two-thirds of the expected rise in the price of gold will be driven by significant central bank purchases on the London over-the-counter market. The remaining one-third of tailwinds will be provided by a gradual rise in exchange-traded flows that are expected to result from the recent Federal Reserve half-point interest rate cut.
Bank of America raises forecast
Bank of America announced it is raising its 2025 forecast from $2,365 an ounce to $2,406, but kept the 2025 forecast unchanged at $2,750. The investment bank also called for silver prices at $35.38 in 2025, along with platinum trading at $1,000 an ounce and Palladium at just $700 an ounce next year.
The average bank forecast from investment banks that follow the precious metals markets is between $2,800 and $3,000 an ounce in 2025.
Written by Tim Zyla
