Gold's Rise Continues, Goldman Sachs Raises Target

Key Points:

* Goldman Sachs projects gold to climb to $3,100 per ounce by year-end, up from $2,890.
* Increased central bank demand, ETF inflows, and geopolitical uncertainty will drive the surge.
* President Trump's tariffs pose a potential upside risk, pushing prices to $3,300.
* Gold has outperformed stocks, gaining 43% in the past year.
* Barrick Gold benefits from the rally, posting record earnings and share buybacks.
* Some analysts predict a short-term pause in gold prices due to rapid appreciation.

Gold's Bullish Outlook

Gold has been on a remarkable trajectory in 2025, buoyed by investors seeking a haven amidst uncertainty surrounding the Trump administration and Federal Reserve policies. By February, prices had soared 9.7% to $2,925 per ounce, close to record highs.

Goldman Sachs remains optimistic about gold's prospects, raising its year-end target to $3,100 per ounce. The bank cites structurally higher central bank demand and a slight increase in ETF holdings as key drivers. Additionally, concerns over President Trump's tariffs could further boost prices to $3,300.

Barrick Gold's Success

Amidst the gold rush, Barrick Gold has emerged as a major beneficiary. The company reported its highest net earnings in a decade in 2024, with operating cash flow reaching $4.5 billion. Barrick Gold has allocated significant funds to share buybacks and dividends.

"Gold is becoming more important as a safe haven in a geopolitically uncertain world," said Barrick Gold CEO Mark Bristow. "We anticipate continued upside in commodity prices."

Short-Term Caution

However, some analysts believe that a short-term pause in gold prices may be on the horizon due to its rapid ascent. Michael Reinking of the New York Stock Exchange observes signs of exhaustion, while Kenny Polcari advises caution, seeing gold as overextended.