Goldman Sachs Maintains Expectation for Gold Prices to Hit Record Levels

According to Goldman Sachs, gold is expected to reach record levels next year due to central bank purchases and interest rate cuts in the U.S. Goldman Sachs ranks gold among the most traded commodities in 2025, stating that prices could increase its gains during Donald Trump's presidency.

In a note reiterating their price target of $3,000 per ounce by December 2025, analysts including Daan Struyven stated, "Go for gold." They mentioned that the structural driving force behind the forecast is higher demand from central banks, while a cyclical rise is expected to result from flows into exchange-traded funds following the Fed's easing.

Goldman also noted that the Trump administration could bolster demand for bullion, as unprecedented trade tensions could revive speculative positioning in gold. Experts added that growing concerns about the fiscal sustainability of the U.S. might also support prices, especially as central banks with significant U.S. Treasury reserves may prefer to acquire more precious metals.

In other outlooks, it was mentioned that Brent crude oil is expected to trade between $70 and $85 per barrel next year, but there are upward risks in the near term if the Trump administration tightens flows from Iran. Analysts indicated that base metals are preferred over iron, and that European gas is facing upward risks related to weather conditions in the short term. They pointed out that "the new U.S. administration further increases risks to Iranian supply," highlighting the potential for sanctions to be enforced more stringently under a maximum pressure campaign. "A potential strengthening of U.S. support for Israel could also raise the likelihood of disruptions to Iran's oil assets."