Gold's Potential Rise: Goldman Raises Price Target

Gold (GC=F) has had a remarkable run in 2025, and Goldman Sachs believes it could continue to soar. The investment bank has increased its year-end price target for gold from $2,890 to $3,100 an ounce.

Factors Driving Gold's Strength

Goldman attributes the positive outlook to "structurally higher" demand from central banks, which is expected to contribute a 9% increase in the price of gold by the year's end. Additionally, a slight rise in ETF holdings will provide further support.

Upside Risks from Trump's Tariffs

Goldman acknowledges that concerns over President Trump's tariffs could potentially boost gold prices even higher. Analyst Lina Thomas suggests that if policy uncertainty, including tariff fears, remains elevated, speculative positioning for gold could extend and push prices as high as $3,300 an ounce by year-end.

Precious Metals Surge Amidst Uncertainty

Gold and other precious metals have been rallying amidst investor concerns about market volatility and policy uncertainty from the Trump administration and the Federal Reserve. Gold prices have risen by 9.7% in 2025, hovering near record highs. Silver and platinum have also experienced significant gains.

Barrick Gold and Gold ETF Shares Climb

Companies exposed to the gold trade have benefited from the rally. Shares of gold miner Barrick Gold (GOLD) have increased by 16% year-to-date, while the SPDR Gold Shares ETF (GLD) has gained 10%.

Barrick Gold's Strong Performance

Barrick Gold is particularly well-positioned to capitalise on gold's record-breaking performance. The company reported its highest net earnings in a decade in 2024, and its operating cash flow rose 18% in the fourth quarter, reaching its highest level since 2020. Barrick Gold has rewarded shareholders with $500 million in stock buybacks and $700 million in dividends in 2024.

Traders Anticipate Short-Term Pause

While the outlook for gold remains positive, some traders anticipate a short-term pullback given its rapid appreciation. However, many analysts still recommend gold as a hedge against market volatility and geopolitical uncertainties.