Gold Price Forecast: Goldman Sachs Raises Target as Bulls Eye $3,300

Gold's (GC=F) stellar performance in 2025 could extend further, according to Goldman Sachs. On Tuesday, the investment bank revised its year-end price target for gold to $3,100 per ounce, up from the previous $2,890.

Goldman attributes this upward adjustment to "structurally higher" central bank demand, which is projected to boost gold prices by 9% by year-end, supplemented by a minor increase in ETF holdings.

However, Goldman cautions that concerns over President Trump's tariffs could pose an "upside" risk to gold prices. "If policy uncertainty, including tariff fears, persists, heightened speculative positioning could drive gold prices as high as $3,300 per ounce by year-end," wrote Goldman strategist Lina Thomas in a client note.

UBS echoes Goldman's bullish sentiment, predicting a potential path for gold to reach $3,200 per ounce. "A more substantial rally than previously anticipated is likely driven by deep-rooted bullish sentiment, with gold considered a safe-haven asset in a highly uncertain and volatile macroeconomic environment," said UBS.

Gold has enjoyed a strong start to 2025, with prices gaining 9.7% year-to-date to $2,925 per ounce. They currently hover near record highs, surpassing 43% growth over the past year. In contrast, the S&P 500 (^GSPC) and Dow Jones Industrial Average (^DJI) have risen by over 20% and 15%, respectively.

Companies involved in the gold trade have benefited from the metal's rally. Barrick Gold (GOLD) shares have surged by 16% year-to-date, while the SPDR Gold Shares ETF (GLD) has added 10%. Barrick Gold, in particular, has reaped the rewards of gold's record-breaking run. Last year, the miner recorded its highest net earnings in a decade, with operating cash flow in the fourth quarter rising by 18% to $1.4 billion.

Barrick Gold CEO Mark Bristow believes that "gold is becoming more important as a safe haven in a geopolitically uncertain world." He further stated, "It's an exciting time to be a gold and copper miner with more upside in the commodity price, in my opinion."

Despite the bullish outlook, some traders anticipate a short-term pause in gold prices due to its rapid ascent. "There are signs of short-term exhaustion," noted New York Stock Exchange strategist Michael Reinking.