Gold's Upside Potential: Goldman Raises Price Target
Gold prices have surged in 2025, and Goldman Sachs believes the rally has more room to run. The investment bank has lifted its year-end price target on gold to $3,100, up from $2,890 previously.
Drivers of Gold Demand
Goldman attributes the upward trend to several factors, including:
* Structurally higher central bank demand, projected to add 9% to gold's price by year-end
* Increased ETF holdings
Trump Tariffs as Upside Risk
Goldman cautions that Trump tariff concerns could further boost gold prices. Strategist Lina Thomas notes that "higher speculative positioning could push gold prices as high as $3,300 an ounce by year-end" in such a scenario.
Gold's Performance and Safe-Haven Role
Gold has outperformed other assets in recent months, as investors seek safe havens amidst policy uncertainty. Gold prices have risen 9.7% year-to-date and are trading near record highs.
Benefits for Gold-Related Companies
The surge in gold prices has benefited gold mining companies. Barrick Gold (GOLD) shares have gained 16% year-to-date, while the SPDR Gold Shares ETF (GLD) has risen 10%.
Barrick Gold's Strong Performance
Barrick Gold has particularly benefited from gold's record run, recording its highest net earnings in a decade last year. CEO Mark Bristow highlights the growing importance of gold as a safe haven in uncertain times.
Short-Term Pause Possible
Some traders anticipate a short-term pause in gold prices given its rapid ascent. However, Goldman remains bullish on gold's long-term prospects.