One of the largest investment companies in the US and the world, Goldman Sachs, has raised its forecast for the price of gold at the end of 2025 to $3,700 per ounce from $3,300, with a projected range of $3,650-$3,950, citing higher-than-expected demand from central banks and higher inflows of exchange-traded funds due to recession risks, UNN reports citing Reuters.
Details
"If a recession occurs, ETF (exchange-traded investment funds) inflows may accelerate even further and raise gold prices to $3,880 per troy ounce (toz) by the end of the year," the bank said in a statement on Friday.
However, as indicated, against the background of a decrease in political uncertainty, ETF inflows are "likely to return to our rate-based forecasts, with year-end prices closer to $3,550 per ton ounce".
The bank also raised its central bank demand assumption to 80 metric tons per month from 70 tons previously.
Spot gold prices reached another record high on Monday at $3,245.42 an ounce, but lacked clear direction as the market "digested" the ongoing tariff story.
Addition
The White House has exempted smartphones and computers from "reciprocal" US tariffs, but President Donald Trump has warned that tariffs are still likely at some point.