Gold prices hit $2,945 in February but reversed gear this month as its price fell below the $2,900 mark. It is now trading at the $2,890 level and is down nearly two points in the indices. The XAU/USD index is looking to climb above the $2,900 mark but cannot scale up in the charts.
However, leading investment bank Goldman Sachs has revised its target for gold predicting that prices could reach $3,300 in 2025. The global bank had previously forecasted that the precious metal could hit $3,000 this year. It is now more bullish on the precious metal estimating it could touch $3,300.
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Goldman Sachs Revises Gold Prices to $3,300 in 2025
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Investment bank Goldman Sachs research analyst Lina Thomas wrote in the latest report that gold prices could keep surging in 2025. Thomas explained that central banks of developing countries are increasingly buying gold and diversifying their reserves. The surge in accumulation comes after the US pressed sanctions on Russia in 2022 following the invasion of Ukraine. She wrote that there is increased demand for gold from emerging economies that will make its climb toward $3,300 unstoppable.
“The increased forecast is underpinned by higher-than-expected demand for gold from central banks, which have been increasing their reserves of the commodity since the freezing of Russian central bank assets in 2022, following Russia’s invasion of Ukraine,” the investment bank wrote.
“Those factors may be somewhat offset by speculators reducing their net long positions on gold in futures markets, which is projected by Goldman Sachs Research to weigh on the gold price somewhat. Net long positions are currently very high as concerns of sustained tariffs from the Trump administration drive investors towards safe-haven assets including gold. This scenario would drive the gold price as high as $3,300 per troy ounce by the end of 2025,” Thomas wrote in the report.
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