Gold's Surge Continues, Goldman Sachs Raises Price Targets
Gold's stellar performance in 2025 shows no signs of slowing down, according to Goldman Sachs. The investment bank recently lifted its year-end price target for gold to $3,100 per ounce, up from $2,890 previously.
Goldman attributes the increase to "structurally higher" central bank demand, which is expected to contribute 9% to gold's price by the end of the year. Additionally, a slight uptick in ETF holdings is anticipated to further support prices.
However, the bank acknowledges that concerns surrounding President Trump's tariffs pose an "upside" risk to gold. "Higher speculative positioning could push gold prices as high as $3,300 per ounce by year-end if policy uncertainty, including tariff fears, remains elevated," said Goldman strategist Lina Thomas.
Precious Metals Shine as Investors Seek Safe Havens
Precious metals, including gold, have enjoyed strong gains in 2025, as investors seek hedges against market volatility amid policy uncertainty from the Trump administration and the Federal Reserve. Gold prices have risen 9.7% year-to-date, hovering near record highs.
Silver and platinum have also benefited from the safe-haven demand, with prices soaring by over 40% and 10%, respectively.
Gold Miners See Strong Returns
Companies exposed to the gold trade have reaped significant rewards. Shares of Barrick Gold have jumped 16% year-to-date, while the SPDR Gold Shares ETF has gained 10%.
Barrick Gold has particularly benefited from gold's remarkable run. The company reported its highest annual net earnings in a decade last year, driven by a surge in operating cash flow.
Potential for Short-Term Pause in Gold Prices
Despite the recent rally, some traders believe a short-term pause in gold prices may be on the horizon. "There are signs of short-term exhaustion," noted New York Stock Exchange strategist Michael Reinking.
Veteran trader Kenny Polcari cautions against chasing gold at current levels, citing concerns about overbought conditions.