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4w ago

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.

An employee takes granules of 99.99 percent pure gold in a workroom during production at Krastsvetmet precious metals plant in the Siberian city of Krasnoyarsk, Russia, May 23, 2024. REUTERS/Alexander Manzyuk/File Photo
Gold is displayed at a jewelry store in Tehran, Iran, March 26, 2025. Majid Asgaripour/WANA (West Asia News Agency) via REUTERS
Male hands wearing a gold watch reach down to grab solid bars of gold
Image

Overview

  • 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.