Goldman Sachs (GS) has forecast that the gold price could zoom past $4,500 an ounce next year and even hit $5,000 if investors keep piling into the precious metal.
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Private Investors
The Wall Street Bank forecasted that gold prices, currently trading over $3,500 an ounce for the first time ever – see below- could hit $3,700 by the end of 2025 and $4,000 by mid-2026. That, it said, assumes strong central bank buying as they shore up their finances in the face of economic and geopolitical volatility.
However, it said the price could go even higher if there is a major shift by private investors out of U.S. dollar assets into gold. That could push prices to as high as $4,500 per ounce.
“Gold remains our highest-conviction long recommendation,” Goldman Sachs said. It also estimated that, assuming all else remains constant, gold prices could approach $5,000 per troy ounce if 1% of the private money invested in the U.S. Treasury market was reallocated to gold.
Fed Independence
It also said that a loss of Fed independence could trigger higher inflation, a rise in long-end bond yields, weaker equities, and a decline in the dollar’s reserve currency status with gold set to benefit.
That comment follows Trump’s attempts to depose Fed governor Lisa Cook and his regular belittlement of Fed chairman Jerome “Too Late” Powell.
Gold has been on quite the march this year as investors flocked to it as a safe haven. That’s because of economic fears caused by Trump’s tariffs and geopolitical fears over conflicts in Ukraine and the Middle East.
“This is looking like the third major bull run in gold since President Richard M. Nixon (above) withdrew America from the gold standard on 15 August 1971,” said AJ Bell Investment Director Russ Mould. “Gold bugs will therefore argue that there could still be more to come.”
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