Goldman Sachs, a major investment bank in the United States, raised its year-end gold price forecast from $3,000 per ounce to $3,100.
According to Bloomberg on 18th, Goldman Sachs analysts Lina Thomas and Dan Struyven noted in a recent report that the target for the year-end gold price has been raised to $3,100 per ounce due to increased gold purchases by Central Banks and inflows into gold-based Exchange-Traded Funds (ETFs). This is an increase from last month's forecast of $3,000 and is more than 6.5% higher compared to the current price. Goldman Sachs evaluates that the gold purchase demand from Central Banks could reach an average of 50 tons per month, which is more than expected.
Goldman Sachs explained, "If uncertainty over economic policy, including tariffs imposed by the United States, persists, speculative demand could increase, and gold prices could reach as high as $3,300 per ounce." In this case, the increase rate of gold prices this year would be 26%.
Gold prices have risen for seven consecutive weeks this year, following a sharp increase last year. The market attributes the rise in gold prices to the increase in gold purchases by Central Banks, the consecutive interest rate cuts by the U.S. Federal Reserve (Fed), and growing investor concerns stemming from recent tariff policies of President Donald Trump.
Goldman Sachs projected, "If uncertainty over trade policy persists, gold prices could rise to $3,300 per ounce by year-end due to speculative positions, and if concerns over inflation and the U.S. financial crisis grow, Central Banks, especially those holding a large amount of Government Bonds, may purchase more gold for risk diversification."
In December of last year, official sector gold demand reached 108 tons, with China accounting for 45 tons. Spot gold is currently trading around $2,909 after surpassing $2,942 per ounce last week.