Gold Prices Surge as Forecasts for 2025 and 2026 Are Raised by Major Banks

Bank of America and Goldman Sachs project continued price increases, driven by strong central bank demand, ETF inflows, and economic uncertainty.

Gold is trading at approximately $3,024 per ounce, reflecting a 15% increase in 2025 to date.
Bank of America raised its gold price forecasts to $3,063 per ounce for 2025 and $3,350 for 2026, citing U.S. trade policy uncertainty and strong central bank demand.
Goldman Sachs increased its end-2025 forecast to $3,300 per ounce, with a potential range of $3,250 to $3,520, supported by ETF inflows and sustained buying by Asian central banks.
Analysts highlight potential upside risks, including a recession-driven Federal Reserve rate-cutting cycle and increased investor demand for gold as a hedge.
Key risks to the rally include geopolitical de-escalation, U.S. fiscal consolidation, and potential short-term price impacts from events like a Russia-Ukraine peace agreement or equity market volatility.