- Goldman Sachs raised its 2025 gold price forecast by $400 to $3,700.
- Gold has surged this year as investors seek safe havens amid tariff-induced uncertainty.
- UBS and Bank of America predict gold prices will reach $3,500 in 2025.
Gold is having a stellar year — and its surge may not be over yet.
Goldman Sachs raised its overall price forecast by $400 to $3,700 an ounce by the end of the year.
Lina Thomas, a commodities strategist at the bank, and Daan Struyven, cohead of global commodities research, said in a note on Friday they expected gold to trade in a range between $3,650 to $3,950, up from $3,250 to $3,520.
The increase was based on stronger-than-expected central bank
demand and a boost from increased recession risk. The Goldman analysts said that stresses in bond markets “increase our conviction that gold is uniquely positioned to hedge recession risk.”
The bank’s economists say there’s a 45% chance of a US recession in the next 12 months. If that happens, the analysts said gold could hit $3,880 by the end of the year — or even as much as $4,500 under certain scenarios.
It comes after gold reached another record high of $3,245 on Friday, after losing ground in the days following the announcement of President Donald Trump‘s tariffs on April 2.
Goldman put the dip down to investors liquidating gold “to meet margin calls” in last week’s stock market selloff.
Gold regained momentum as investors seek out safe-haven assets, which typically maintain or increase their value during market turbulence. It’s hit a number of records this year, passing the $3,000 threshold for the first time last month.
At the end of last week, UBS analysts raised their 2025 gold price target to $3,500, citing “escalating tariff uncertainty, weaker growth, higher inflation and lingering geopolitical risks.” Bank of America also has a price target of $3,500.
Get the latest Gold price here.