Goldman Sachs has raised its gold price forecast for the end of 2025 from $3,100 to $3,300 per ounce. This positive outlook is based on two main factors:
– First, more investors are buying gold through ETFs, a trend expected to continue as the Federal Reserve is predicted to cut interest rates this year and in 2026.
– Second, central banks, especially in China and other Asian countries, are steadily purchasing gold to increase their reserves.
Gold is currently trading at $3,060.70, having risen 36% over the past year. While a Russia-Ukraine peace deal might cause temporary selling pressure, Goldman Sachs sees both a Russia-Ukraine peace agreement and any major stock market decline as good opportunities to buy gold at lower prices.