Goldman Sachs Target US$3,000 As Metals Recover

Analysts for Goldman Sachs say that gold will push on to a record price next year on the back of central bank buying and U.S. interest rate cuts, making it one of the top commodity trades for 2025. Despite a cooling in gold markets since the U.S. election recently, the bank has stuck by their prediction of US$3,000/oz (AU $4,611) by December 2025.

Gold’s remarkable 2024 has been underpinned by central bank buying and easing monetary policy by the U.S. Fed, which allowed the metal to make successive new highs. Now, Goldman believes that a Trump administration could also aid gold investors. In particular, they point out the potentially unprecedented escalations in trade tensions that could reignite speculative positioning in gold.

In addition, rising concerns over U.S. fiscal sustainability may also aid prices, noting that central banks — especially those holding large U.S. Treasury reserves — may opt to buy more of the precious metal.

Gold has recently bounced 2% and silver 4% after a dip in prices after following the U.S. election.

This optimistic outlook aligns with broader macroeconomic trends highlighted in our most recent analysis of global liquidity. Shifts in global liquidity cycles driven by central bank easing and a retreat from aggressive tightening are playing a pivotal role in supporting the drive of asset prices across gold and silver. Declining real interest rates, combined with growing concerns over U.S. fiscal sustainability are pushing central banks to increase their exposure to gold as a hedge against both inflation and geopolitical instability.