Gold Prices Expected to Rise in 2025, with a Potential Target of $3,300
Goldman Sachs has revised its year-end price target for gold upward to $3,100 per ounce, citing higher central bank demand and ETF holdings. The investment bank also notes that concerns over President Trump's tariffs could further drive up gold prices to as high as $3,300 per ounce.
UBS echoes Goldman's optimism, suggesting that gold could reach $3,200 per ounce. They attribute this potential rally to increased investor demand for safe-haven assets amidst economic and political uncertainty.
Precious metals have performed well in the past two months, with gold prices rising 9.7% year-to-date to $2,925 per ounce. Gold has outperformed the S&P 500 and Dow Jones Industrial Average, which have gained over 20% and 15%, respectively.
Gold miners have benefited from the rise in gold prices. Barrick Gold (GOLD) has gained 16% year-to-date, while the SPDR Gold Shares ETF (GLD) has risen 10%. Notably, Barrick Gold reported record net earnings in 2024 and increased operating cash flow in the fourth quarter.
However, some traders anticipate a short-term pause in gold prices. New York Stock Exchange strategist Michael Reinking observes signs of exhaustion, while veteran trader Kenny Polcari suggests that gold may be overbought.
Despite these cautious views, analysts remain bullish on gold's long-term prospects. As uncertainty remains in the global economy and markets, gold is expected to maintain its appeal as a safe-haven asset.