They Keep running And it has now almost reached a value of 3 thousand dollars, swinging this morning a handful of dollars under this level at 2,965.4 USD (+1%). The maximum of all time it was touched at 2,968 dollars. The achievement and breakdown of the $ 3,000 roof would be an important signal for the market. But Where can the precious metal arrive? Analysts of Goldman Sachs they just have revised the forecasts up On the price of gold, based on a series of factors, not least the purchases of the central banks, and advise to “buy”.
Goldman reviews the target price at the end of 2025
“We have revised our predictions on the gold price at the end of 2025 at 3,100 dollars/tozcompared to the previous 2,890 dollars/toz – reports the US business bank – due to one request structurally higher by central bankswith our “GS Central Bank Nowcast” (short -foreseen forecast on the moves of the central banks) which once again surprises upwards in December, and we reiterate our recommendation for Long (purchase) trading on gold “.
The question of central banks
December estimates on purchases of gold by central banks and other institutional subjects on the London OTC market were strong, attesting to 108 tons (compared to the pre-2022 average of 17 tons). There China it was once again the larger buyeradding 45 tons. For this reason, the business bank raised the forecast on the demand by the central banks at 50 tons per month (compared to the previous 41 tons).
The impact on the price of gold
The forecasts, therefore, were formulated by GS analysts, estimating “one request structurally higher by the central banks“. The greatest question of central banks is believed will increase the price by 9% of gold by the end of the year. Combining this effect on the gradual Increase in ETF participations (impact equal to +2% on prices), we would be able to compensate for the braking effect of one normalization positioning (-4%)assuming a decrease in uncertainty.
The uncertainty factor weighs well
These are the basic forecasts in the event of the loosening of the Uncertainties and geopolitical tensions. However, Goldman warns that, in the event that political uncertainty – including tariff fears – remains high, a speculative positioning continued over time could push gold prices up to 3,300 dollars/toz by the end of the year and therefore on a higher level of the indicated target.
On the contrary, if the Fed kept the rate unchanged of the Fed Funds (interest rates), the price of gold could be on a lower level at 3,060 dollars by the end of 2025.
