Goldman Sachs, the global investment bank, expects gold prices to reach a record level next year, driven by central bank purchases and lower interest rates in the United States .
The bank listed the precious metal among the best commodity deals for 2025, as it expects prices to continue rising during Donald Trump’s presidency of the United States .
“Buy gold,” analysts at the bank, including Dan Struven, wrote in a research note, reiterating their target of $3,000 per ounce by December 2025 .
explained that the main driver of their expectations is the increase in demand for the yellow metal by central banks, while periodic support will come from flows into exchange-traded funds as the Federal Reserve cuts interest rates .
Gold prices have risen strongly this year, hitting successive record highs, before falling slightly after Trump won the US presidential election, which provided support for the dollar .
Gold gains were boosted by increased official sector purchases and the Fed’s move to ease monetary policy .
Goldman Sachs noted that the Trump administration could also help support gold prices .
Analysts added that an unprecedented escalation in trade tensions could revive speculative activity in gold. Growing concerns about the sustainability of the financial situation in the United States could also support prices, noting that central banks, especially those with large reserves of US Treasury bonds, may decide to buy larger quantities of the precious metal .
Spot gold prices were at $2,585 an ounce today, after peaking above $2,790 last month.
