Goldman Sachs has forecast that the price of gold could rise to $3,700 per ounce by the end of this year as global gold prices rise due to US President Donald Trump’s counter-tariffs.
Their previous forecast was $3,300 per ounce. Not only that, they say that the price of gold could fluctuate between $3,650 and $3,950 per ounce. Goldman Sachs has made this forecast based on the assumption that central bank demand and investment in gold-based ETF funds will increase.
According to a Reuters report, if there is a recession in the meantime, the price of gold could rise to $3,880 per ounce by the end of the year. Goldman Sachs made this forecast in a note last Friday.
Goldman Sachs also said that if policy uncertainty is removed in this situation, investment in gold ETFs will be as predicted. That is, investment in fixed-interest ETFs will also be made. In that reality, Goldman Sachs believes that the price of gold will not increase that much. Goldman predicts that the price of gold could rise to $3,550 per ounce by then.
In addition, the demand for gold by the world’s central banks is also forecast to increase to 80 metric tons per month this year. It was 70 metric tons last year.
According to data from Gold Price.org, the price of gold in the world market has decreased slightly today. That amount is less than one dollar. As a result, the price of gold in the world market has dropped to $3,315 per ounce. The price of gold has increased by $279 per ounce in the last one month. It has increased by $926 in the last one year.
The use of gold is not limited to jewelry. The gold reserves of central banks are increasing again. People are also increasing their investment in gold bars and gold-based exchange-traded funds (ETFs). According to the annual report of the World Gold Council, 4,974 tons of gold were bought and sold worldwide last year.
The report says that the purchase of gold by central banks of different countries of the world is increasing. In 2024, the world’s central banks collectively bought more than 1,000 tons of gold for the third consecutive year. Last year, the Polish central bank bought the most gold. They bought 90 tons of gold.
The price of gold in the domestic market is also increasing in line with the global market.
