Goldman Lowers Gold Price Forecast to $3,000 by End of 2025

Goldman Sachs has revised its gold price forecast down to $3,000 by December 2025, maintaining a bullish stance due to strong demand for physical gold from financial authorities, investors, and speculators. Previously predicting gold to be at $3,080 at the end of 2025, Goldman Sachs noted that central bank demand for gold is driven by concerns that US financial sanctions and shocks to US government debt could push gold prices up by 9%.

Goldman also lowered its average price forecast for 2025 from $2,973 to $2,906. Additionally, it expects a 7% increase in physical gold-backed Western Exchange-Traded Fund (ETF) assets as the Federal Reserve's policy rate is expected to decrease to 3.25%-3.50% by mid-next year.

The investment bank stated that its view of a fivefold increase in central bank demand in the London OTC market since Russia's invasion of Ukraine has reset the relationship between gold prices and interest rates. The bank's continued bullish outlook also considers the role of speculators turning to gold as a safe haven ahead of the US elections on November 5.

Despite accepting potential downward price risks due to a reduction in speculative positioning post-election, the company emphasizes that long gold positions retain significant hedging value amid potential trade tensions and financial risks. Goldman, while predicting gold to reach $3,000 by the end of 2025, has decreased its average price forecast for 2025 from $2,973 to $2,906.