Why UBS and Goldman Sachs Are Boosting Their Gold Forecasts
Goldman Sachs: Raises the gold target price to $3,100 per ounce by the end of 2025.
The Fed's two rate cuts will gradually boost ETF holdings.
The central bank's demand is strong, Goldman Sachs has raised the Target Price for Gold, aiming for 3100 dollars!
Goldman Sachs believes that rising concerns over inflation and fiscal risks may drive central banks to purchase more Gold, especially those holding a large amount of U.S. Treasury bonds. Compounded by increasing worries over Trump's destructive tariff policies, Goldman Sachs has raised the year-end Target Price to $3,100, stating, “If economic policy uncertainty persists, increased speculative positions may drive Gold prices soaring to $3,300.”
February 18th spot Gold technical analysis: high position oscillation does not change the bullish pattern.
On Tuesday (February 18), spot Gold slightly rose during the European trading session. Although it did not break through the previous historical high, the short-term adjustment remains strong. On one hand, there is a divergence among Federal Reserve officials regarding interest rate cut expectations; on the other hand, there are no obvious signs of a decrease in bullish Hold Positions in ETFs such as SPDR. Therefore, this adjustment is more of a technical correction, as it is currently overbought and bullish sentiment is too heated, waiting for opportunities to buy on dips after the adjustment. Continue to pay attention to the changes in USA economic data and Federal Reserve interest rate cut expectations. In the medium term, as long as it has not broken below the rising Trendlines, maintain a bullish running, and if the Federal Reserve's interest rate cut expectations heat up, then there is hope.
Goldman Sachs has raised its gold price forecast to $3,100 by the end of 2025, with central bank gold purchase demand as a key driving force.
The demand for Gold from central banks is rising, and Goldman Sachs has revised its Gold price expectations upward. Goldman Sachs pointed out that the demand for Gold from central banks is becoming an important support factor for the Gold market. The bank expects that the average monthly Gold purchases by global central banks will reach 50 tons, higher than the previous forecast of 41 tons. If the scale of central bank Gold purchases expands further to 70 tons per month, Gold prices could rise to $3,200 per ounce by the end of 2025. The continuous Gold purchases by central banks reflect the uncertainty in the global financial environment, especially as central banks may increase their Gold reserves to diversify risks against the backdrop of rising credit risks associated with the US dollar. "Structural demand for Gold from central banks is expected to drive up Gold prices by 9% by the end of the year."
3100 USD! Goldman Sachs raises its year-end gold price forecast and continues to recommend 'Buy'.
①Goldman Sachs has raised its forecast for gold prices at the end of 2025 from $2,890 to $3,100, due to strong demand for gold from global central banks; ②Goldman Sachs further predicts that if policy uncertainty remains high, gold prices could soar to $3,300; if central banks purchase an average of 70 tons of gold per month, gold prices could reach $3,200.
