Goldman Sachs delays $3,000 target for gold prices
The Goldman Sachs logo is seen at the New York Stock Exchange during morning trading in New York City, US, on Aug. 25, 2023. (AFP Photo)
U.S.-based investing bank Goldman Sachs postponed its forecast of gold reaching $3,000 per ounce, initially expected by the end of 2025, because of expectations of fewer interest rate cuts by the U.S. Federal Reserve (Fed).
The bank now anticipates gold hitting the $3,000 mark by mid-2026, citing revised projections for Fed rate cuts.
“Opposing forces—lower speculative demand and structurally higher central bank buying—have effectively offset each other, keeping gold prices range-bound over the past few months,” Goldman analysts stated.
They added that central banks’ appetite for gold will remain a key driver of prices in the longer term, predicting average monthly purchases of 38 tons through mid-2026.
Gold prices rose until Trump’s victory
In 2024, gold experienced a 27% surge, supported by monetary easing in the U.S., safe-haven demand, and consistent purchases by global central banks.
However, the rally lost momentum in early November following Donald Trump’s U.S. election victory, which strengthened the U.S. dollar index.
Recently, gold has come under pressure as Fed officials emphasized caution in reducing borrowing costs amid renewed inflation concerns.
Goldman economists now expect the Fed to implement a total of 75 basis points in rate cuts this year, down from their previous forecast of 100 basis points.
Analysts predict gold will reach $2,910 per ounce by the end of 2025.
In global markets today, gold edged higher, trading at $2,647 per ounce by 11:48 a.m. GMT.
