Goldman Sachs Raises Gold Forecast to $2,900 by 2025

In early September, analysts from the financial powerhouse Goldman Sachs projected that the price of gold would hit $2,700 per ounce by next year. Fast forward to a month later, and Goldman’s market strategists are now setting their sights even higher, forecasting gold to climb to $2,900 per ounce in 2025.

Gold Set for Gains: Goldman Sachs Predicts Price Climb to $2,900 per Ounce

Last month, Bitcoin.com News shared a prediction from Goldman Sachs commodity analysts, forecasting an 8% potential rise in the price of .999 fine gold. The analysts expressed their “highest confidence” in gold at the time, projecting it to climb to $2,700 per ounce. Just a month later, however, these same financial experts have switched gears and are now taking a fresh outlook.

This past week, Goldman analysts doubled down on their call to go long on gold, highlighting strong demand from both institutional investors and central banks. Goldman Sachs has upped its forecast for gold, raising its projection from $2,686 per ounce next year to $2,973 by 2025. “We reiterate our long gold recommendation due to the gradual boost from lower global interest rates, structurally higher central bank demand and gold’s hedging benefits against geopolitical, financial, and recessionary risks,” the analysts explained.

As of Sunday, Oct. 6, gold is holding steady at $2,653 per ounce, down 0.30% over the past week. However, in the last month, gold has gained 6.35% against the U.S. dollar. Goldman isn’t alone in its optimism. Swiss investment bank UBS has named gold as its “Most Preferred” asset in its global strategy, while Bloomberg Intelligence’s Senior Commodity Strategist Mike McGlone believes hedge funds will drive gold to $3,000 per ounce.

Central banks are also adding to their gold reserves. According to Krishan Gopaul, senior analyst for the World Gold Council, last month’s report showed a 206% increase in net gold purchases for July compared to the previous month. Retail buyers are joining the gold rush, too. Costco’s recent earnings revealed a double-digit rise in gold sales over a three-month period, and the retail giant has now announced plans to start selling platinum as well.

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