“Goldman Sachs predicts that the price of gold may reach $3,000 per ounce next year, as central banks around the world continue to buy gold in large quantities. The bank also believes that gold is the preferred asset to deal with inflation and geopolitics in 2025.
Financial Associated Press November 25th (Editor Huang Junzhi) Goldman Sachs' co-director of commodity research, Samantha Dart, stated that with central banks around the world continuing to buy gold in large quantities, the price of gold may reach $3,000 per ounce next year.
Since the beginning of this year, the price of gold has risen significantly, up 30% compared to January. Last week, the international gold price had a "five-day increase", with a cumulative increase of nearly 6%, the largest single-week increase since October last year. At the close, COMEX gold futures rose by 1.62%, to $2718.2 per ounce. Dart's forecast suggests that the gold price will rise by over 10%.
"This growth will be mainly driven by central bank purchases. Compared to the average level before 2022, the global central bank's gold purchases have increased fivefold." She said.
Data from the World Gold Council shows that the gold purchase volume of central banks in various countries in the last quarter increased by more than double year-on-year, to 186 tons. The organization stated in a report in October that since the beginning of this year, central banks around the world have bought 694 tons of gold.
"Since 2022, this has been a major driving factor for the gold trend," Dart said in a recent interview. "The moment Russia's financial assets were blocked, it caused a lot of concerns in emerging markets. Therefore, the purchasing power of central banks has significantly increased."
Dart stated that emerging market economies may continue to purchase gold rapidly next year, as many countries in these markets still have "very low" gold reserves compared to developed economies.
On the other hand, Dart also mentioned that the price of gold may also be supported by bid from ETFs. She pointed out that in the face of increasing economic and geopolitical uncertainties, many traders are turning toIts price has soared to a historic high, closely related to market expectations of interest rate cuts by the Federal Reserve.Interested.
Data from the World Gold Council shows that in the third quarter, global gold total demand reached 1,313 tons, valued at over $100 billion, hitting a historical high. Meanwhile, gold investment demand in the previous quarter more than doubled year-on-year, reaching 364 tons.
"'Safe haven' is just icing on the cake," Dart said. "There are many uncertainties in the future. Customers have always been very concerned, will tariffs escalate? This may bring uncertainty, which usually triggers higher positions."
Overall, Goldman Sachs believes that "the surging US dollar is no longer a stumbling block for gold prices to continue rising," and considers gold to be the "preferred trade" in 2025 to address inflation and geopolitical issues, seen as the preferred asset to address subsequent risks such as tariff escalation and concerns about US debt default.
Not only Goldman Sachs, other Wall Street forecasters are also looking towards record high gold prices next year. Senior commodity analyst and founder of CPM Group, Jeffrey Christian, predicts that gold prices will reach a historical high by the end of January next year.
In a recent report to clients, he speculates that gold may remain stable for several months before rebounding to cyclical peaks by 2026, meaning that in the first year of the Trump administration, gold will set multiple historical highs.
Citigroup, on the other hand, predicts that by mid-2025, gold prices may touch $3000, citing "geopolitical heat" and demand for safe-haven assets.
Editor/ping
