The price of gold surged a record 15% in 2025 and is among the top-performing assets in the commodity markets. The phenomenal rise has led to an influx of new investments from both retail and institutional investors. In addition, central banks of developing countries have accumulated tonnes of the glittery metal in their reserves. The development is making the XAU/USD index surge and it’s now looking to hit another new high. The commodity markets are outperforming the stock market index this year making metals lucrative as investments.
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New Gold Price Target $3,300
Leading investment bank Goldman Sachs has revised its price prediction for gold in 2025. It was among the first ones to predict last year that the precious metal could reach $3,000 during the first half of 2025. However, the global bank now predicts that gold prices could touch $3,300 this year. That’s another 10% from its ATH and an overall surge in value of approximately 25% year-to-date.
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The increasing demand for gold from retail investors, institutional funds, and central banks will drive the price higher. Since the stock market is on a slippery slope due to tariffs, gold is seen as a safe haven. “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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