Shock gold forecast from Goldman Sachs! How much will it be in 2025?

World-renowned bank Goldman Sachs has shared its forecast regarding how gold prices will perform in 2025.

The bank stated that gold will rise by another 8 percent by the end of 2025, reaching 3 thousand dollars per ounce.

The bank cited continued central bank gold purchases, Fed interest rate cuts, and ongoing interest in safe-haven investments as the reasons for this forecast.

This year, the price of gold has increased by more than 30 percent, reaching record levels of 2 thousand 790 dollars.

Goldman Sachs' forecast is based on three main reasons:

1- Central bank demand: Goldman believes that high gold demand from central banks will continue, though it will slow down slightly next year. Following the sanctions imposed on Russia, some countries have turned to buying gold independently of the dollar to diversify their reserves.

According to analysts, central bank purchases will slow to a level of 30 tons per month by the end of 2025, but this rate will still remain above the pre-2022 average of 17 tons.

2- Falling interest rates in the US: Falling US interest rates will increase gold-backed ETF investments in the West. Goldman Sachs expects the US Federal Reserve (Fed) to lower the policy rate to the 3.25-3.5 percent range by mid-2025.

Since gold does not provide interest income, a low-interest-rate policy increases the metal's competitiveness. High interest rates make other interest-based assets more preferable.

3- Safe-haven investments: Safe-haven investments in gold will also continue to increase. The bank notes that speculative positions in gold have reached high levels due to geopolitical and inflation concerns.

While these positions are expected to normalize as post-election uncertainty decreases, factors such as trade disputes, threats to the Fed's independence, US debt concerns, and future recession risks will continue to keep gold an attractive hedging tool in the long term.