University of Kwazulu-Natal

Gold Predicted To Climb Higher Than Expected As Records Shatter

Bonisiwe Shabane
-
gold predicted to climb higher than expected as records shatter

Gold is forecast to climb higher than previously expected as central banks in emerging markets have ramped up purchases, according to Goldman Sachs Research. Gold usually trades closely in line with interest rates. As an asset that doesn’t offer any yield, it typically becomes less attractive to investors when interest rates are higher, and it’s usually more desirable when rates fall. While that relationship still holds, central bank purchases have been a powerful force, resetting the level of gold prices higher since 2022, Goldman Sachs Research analyst Lina Thomas writes in her team’s report. What is the prediction for gold prices for 2025? The precious metal is predicted to rise to $3,000 per troy ounce by end-2025, Thomas writes.

Gold has risen to multiple all-time highs this year. Thomas points out that the relationship between changes in the gold prices and changes in interest rates still exists, but sizable central bank purchases of gold bars have reset the relationship between rate and... Goldman Sachs Research estimates that 100 tonnes of physical demand lifts gold prices by at least 2.4%. Updated on: December 23, 2025 / 7:51 AM EST / CBS News Gold prices soared above $4,400 on Monday to reach a new all-time high, as analysts pointed to rising geopolitical tensions and softer monetary policy as key drivers of the surge. The price of the precious metal traded at $4,475 per ounce at 4 p.m.

EDT after hitting a high of $4,477 per ounce earlier in the day. The asset has risen more than 70% since the start of this year. Gold is viewed as a safe-haven investment and typically acts as a hedge against inflation. "The metals trade has been strong all year, and particularly for gold," Bret Kenwell, a U.S. investment and options analyst at eToro, told CBS News. "As its fundamentals remain intact, gold digested its recent rally to all-time highs quite well."

Silver prices were also rallying on Monday, reaching $69 by 4 p.m. EDT. The metal is up 130% since the start of the year. Anindito Mukherjee / Bloomberg / Getty Images In late March, Goldman Sachs predicted the price of gold would hit $3,300 per troy ounce at the end of the year. It took less than a month to reach that level.

Since then, gold has continued climbing previously unscalable heights—and forecasters have had trouble keeping pace. The precious metal's price now reaches new all-time highs almost daily. Early last week, Goldman raised its end-of-year forecast to $4,900 per ounce from $4,300 previously. The increase occurred just in time: Gold eclipsed $4,300 Thursday for the first time, pushing its year-to-date gain to roughly 65%. Gold's biggest rally in a half-century begs the obvious question: Just how high can its price go? Gold prices surged in 2025 due to trade tensions, central bank and ETF demand.

What is the gold price forecast for 2026 and beyond? Goldman Sachs Research anticipates a bullish outlook for gold, projecting prices to reach $2,900 per ounce by early 2025, up from a prior forecast of $2,700. This optimism is largely attributed to a surge in gold purchases by central banks, especially in emerging markets. Traditionally, gold prices align closely with interest rate trends—lower rates often boost gold's appeal as a non-yielding asset. However, significant central bank buying since 2022 has shifted this dynamic, with Goldman estimating that an additional 100 tonnes of physical gold demand can lift prices by around 2.4%. This surge in demand is partly driven by a desire for financial security, especially after the freezing of Russian central bank assets in 2022, which raised concerns over sanctions risks.

Emerging market central banks, which typically have smaller gold reserves compared to developed nations, appear to be "catching up" as a buffer against potential geopolitical and fiscal risks. With the U.S. debt at 124% of GDP, policymakers are increasingly wary of overreliance on U.S. Treasury bonds. Western investor interest in gold is also picking up, particularly in light of the upcoming U.S. presidential election and heightened concerns over trade tensions and fiscal stability.

Although many investors are cautious about gold’s record-high prices, Goldman Sachs expects Western-held gold ETFs to gradually increase as interest rates fall, potentially leading to a competitive dynamic between central banks and investors for... Review our full array of available precious metals to help diversify your portfolio, bolster your savings, and protect and secure your retirement. Thor-Approved Gold: Universally recognized/highly liquid investment grade coin/bar of at least .999 purity. Thor-Approved Silver: Universally recognized/highly liquid investment grade coin/bar of at least .999 purity. Thor-Approved Platinum: Universally recognized/highly liquid investment grade coin/bar of at least .999 purity. “It’s time to safe guard your retirement with precious metals!

While the Gold IRA and Silver IRA are the most talked about, your portfolio should actually contain a mix of metals, (Catch all the US News, UK News, Canada News, International Breaking News Events, and Latest News Updates on The Economic Times.) Download The Economic Times News App to get Daily International News Updates. (Catch all the US News, UK News, Canada News, International Breaking News Events, and Latest News Updates on The Economic Times.) Download The Economic Times News App to get Daily International News Updates.

People Also Search

Gold Is Forecast To Climb Higher Than Previously Expected As

Gold is forecast to climb higher than previously expected as central banks in emerging markets have ramped up purchases, according to Goldman Sachs Research. Gold usually trades closely in line with interest rates. As an asset that doesn’t offer any yield, it typically becomes less attractive to investors when interest rates are higher, and it’s usually more desirable when rates fall. While that r...

Gold Has Risen To Multiple All-time Highs This Year. Thomas

Gold has risen to multiple all-time highs this year. Thomas points out that the relationship between changes in the gold prices and changes in interest rates still exists, but sizable central bank purchases of gold bars have reset the relationship between rate and... Goldman Sachs Research estimates that 100 tonnes of physical demand lifts gold prices by at least 2.4%. Updated on: December 23, 202...

EDT After Hitting A High Of $4,477 Per Ounce Earlier

EDT after hitting a high of $4,477 per ounce earlier in the day. The asset has risen more than 70% since the start of this year. Gold is viewed as a safe-haven investment and typically acts as a hedge against inflation. "The metals trade has been strong all year, and particularly for gold," Bret Kenwell, a U.S. investment and options analyst at eToro, told CBS News. "As its fundamentals remain int...

Silver Prices Were Also Rallying On Monday, Reaching $69 By

Silver prices were also rallying on Monday, reaching $69 by 4 p.m. EDT. The metal is up 130% since the start of the year. Anindito Mukherjee / Bloomberg / Getty Images In late March, Goldman Sachs predicted the price of gold would hit $3,300 per troy ounce at the end of the year. It took less than a month to reach that level.

Since Then, Gold Has Continued Climbing Previously Unscalable Heights—and Forecasters

Since then, gold has continued climbing previously unscalable heights—and forecasters have had trouble keeping pace. The precious metal's price now reaches new all-time highs almost daily. Early last week, Goldman raised its end-of-year forecast to $4,900 per ounce from $4,300 previously. The increase occurred just in time: Gold eclipsed $4,300 Thursday for the first time, pushing its year-to-date...