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Goldman Sachs Group Inc has listed gold among the top commodity trades for 2025 and says prices could extend gains during Donald Trump’s presidency.
Gold may achieve a target of $3,000 an ounce by December 2025, says Goldman Sachs’ analysts.
Even as gold rates touched an all-time high in October before pulling back moderately, Goldman Sachs Group has said the price of the precious yellow metal will rally to record next year on central bank buying and US interest rate cuts.
Goldman Sachs Group Inc has listed gold among the top commodity trades for 2025 and said prices could extend gains during Donald Trump’s presidency.
“Go for gold,” analysts including Daan Struyven said in a note, reiterating a target of $3,000 an ounce by December 2025. The structural driver of the forecast is higher demand from central banks, while a cyclical lift would come from flows to exchange-traded funds as the Federal Reserve cuts, they said.
On Monday, gold was trading higher by 0.85 per cent at $2,585.2 an ounce in the international market. Silver was also up by 1.36 per cent at $30.70 an ounce.
Gold has experienced a strong rally this year, reaching multiple record highs before retreating slightly following Donald Trump’s White House victory, which strengthened the dollar. The rally has been fuelled by increased purchases by central banks and the Federal Reserve’s shift toward looser monetary policy. Goldman Sachs analysts noted that the Trump administration could further bolster gold’s appeal.
“An unprecedented escalation of trade tensions could revive speculative positioning in gold,” they stated. Additionally, concerns about the sustainability of US fiscal policies could provide further support for gold prices. Central banks, particularly those with significant US Treasury reserves, may increase their gold holdings, the analysts added.
In other markets, Brent crude prices are expected to range between $70 and $85 per barrel next year. However, there is a potential for short-term upside if the Trump administration intensifies efforts to restrict Iran’s oil exports. Base metals remain more favorable than ferrous metals, while European gas markets could face short-term price spikes due to weather-related factors.
“The new US administration further raises the risks to Iran supply,” analysts highlighted, pointing to the possibility of stricter sanctions enforcement under a maximum-pressure campaign. They also noted that “a potential strengthening in US support to Israel may increase the probability of disruptions to Iran’s oil assets.”
