According to Zhitong Finance APP, Goldman Sachs predicts that by the end of 2025, Gold prices will not reach $3000 per ounce and has pushed this prediction to mid-2026, due to the market expecting the Fed to reduce the magnitude of rate cuts.

Analysts at Goldman Sachs, including Lina Thomas and Daan Struyven, state that the slowdown in monetary easing in 2025 will suppress investor demand for Gold ETFs, with Gold prices expected to reach $2910 per ounce by year-end. The analysts noted in a report that the uncertainty following the US elections, which weakened ETF fund flows in December of last year, contributed to a lower pricing starting point for the new year.

Analysts stated, "The opposing forces—declining speculative demand and increasing structural purchases by central banks—have effectively offset each other, keeping Gold prices fluctuating within a range over the past few months." They added that central bank buying will remain a key long-term driver of Gold prices and expect the average monthly purchases by central banks to reach 38 tons by mid-2026.

Supported by the Fed's monetary policy easing, safe-haven demand, and ongoing purchases by central banks worldwide, Gold surged 27% in 2024, reaching a historic high. However, as Trump won the election and boosted the dollar, Gold's rally stagnated in early November last year. With recent emphasis from Fed officials on inflation concerns and the necessity for a more cautious approach to rate cuts, Gold prices came under pressure.

Goldman Sachs economists currently expect the Fed to cut rates by 75 basis points this year, down from the previously forecasted 100 basis points. This prediction is more dovish than the current market expectations, as Goldman Sachs believes that underlying inflation is tending to decline. Additionally, Goldman Sachs economists have expressed doubt about whether potential policy changes from the incoming Trump administration will lead to rising interest rates.