Goldman Sachs Group Inc. recently stated that it does not expect Gold prices to reach $3,000 per ounce by the end of this year, pushing this forecast to mid-2026 due to expectations that the Federal Reserve will reduce the pace of interest rate cuts.

A slowdown in monetary easing policies in 2025 will suppress demand for Gold ETFs, leading Goldman Sachs analysts, including Lina Thomas and Daan Struyven, to predict that Gold prices will reach $2,910 per ounce by the end of this year. In a report, they wrote that the easing of uncertainty following the U.S. elections led to lower-than-expected inflow into Gold ETFs in December last year, which is also one of the reasons for the lower starting price of Gold in the new year.

Analysts said, "The decline in speculative demand and the structural increase in central bank Bids are two opposing forces that effectively offset each other, keeping Gold prices in a range-bound state over the past few months."

They added that the "appetite for Gold" from central banks will remain a key long-term driving factor for Gold prices. "Looking ahead, we predict that the average monthly Gold procurement by central banks will reach 38 tons by mid-2026."

Last year, supported by the USA's loose monetary policy, safe-haven demand, and continued purchases by Global central banks, Gold prices soared by 27%, hitting an all-time high. However, following Trump's victory in the USA elections, the strengthening dollar caused Gold's upward momentum to stall in early November last year. Recently, the emphasis by Federal Reserve officials on necessitating a more cautious approach to cutting interest rates this year and a renewed market concern over inflation have put pressure on Gold.

Goldman Sachs economists currently expect the Federal Reserve to cut interest rates by 75 basis points this year, down from the previously expected 100 basis points. Goldman Sachs's forecast is more dovish than current market pricing, as the bank believes that underlying inflation is on a downward trend. Economists also express skepticism about whether any policy adjustments Trump might make would lead to rising interest rates.

It is worth mentioning that Goldman Sachs previously stated that the impact of central bank purchases and the Federal Reserve's interest rate cuts will lead to Gold prices rising to record levels in 2025. Goldman Sachs has listed Gold as one of the top commodity Trades in 2025 and stated that Gold prices could continue to rise during Trump's presidency. In a report at the time, Goldman Sachs analysts, including Daan Struyven, said, "Go Buy Gold." They reaffirmed the price target of $3,000 per ounce by December 2025. They also stated that the structural driving factor for this forecast is the increased demand from central banks, while the cyclical driving factor is the inflow into Gold ETFs following the Federal Reserve's interest rate cuts.

Goldman Sachs expects the S&P 500 Index to rise to 6,500 points by the end of the year.

Goldman Sachs also released a report expecting that the S&P 500 Index is likely to rise by 11% to 6,500 points by the end of this year, mainly driven by corporate earnings growth; it is estimated that the earnings per share growth will be 11% this year and 7% next year, with the PE expected to remain around 21.5 times by the end of the year.

Goldman Sachs stated that the total ROI of the S&P 500 Index reached 25% last year, marking the second consecutive year that the ROI exceeded 20%, with the last time this occurred in 1998 and 1999, just before the Internet bubble burst. Last year, nearly half of the annual return came from five stocks: NVIDIA, Apple, Amazon, Alphabet, and Broadcom.

The S&P 500 Index started sluggish in 2025, continuing the downward trend since December last year, as investors locked in some profits for 2024. Uncertainty surrounding interest rates in the USA and the upcoming Trump policies also put pressure on risk appetite, particularly concerning the outlook for local stocks.