Gold Set to Soar! Big Banks Raise Target to as High as $3,680 by 2025
Gold Set to Soar! Big Banks Raise Target to as High as $3,680 by 2025
Gold prices continue their strong rally, with two major U.S. banks — Goldman Sachs and Bank of America (BofA) — raising their year-end 2025 price targets. The upward revisions are driven by three key factors: trade tensions, central bank gold purchases, and rising inflows into gold ETFs.
Goldman Sachs Raises Year-End Forecast to $3,300
Goldman Sachs increased its gold price forecast for the end of 2025 from $3,100 to $3,300 per ounce, citing stronger-than-expected inflows into gold ETFs and ongoing demand from global central banks.
The firm also noted that central banks in Asia, especially China, are expected to continue accumulating gold over the next 3–6 years. Goldman raised its monthly gold demand estimate from central banks from 50 tons to 70 tons per month, reflecting growing uncertainty around U.S. policy.
BofA Projects Gold to Hit $3,350 in 2026
Bank of America raised its average gold price forecast for 2025 to $3,063 per ounce, up from $2,750, and for 2026 to $3,350 per ounce, up from $2,625. The bank attributes this bullish outlook to persistent uncertainty stemming from U.S. trade policies.
ETFs Could Push Gold to $3,680 in Bullish Scenario
Goldman Sachs believes that expected interest rate cuts by the U.S. Federal Reserve — two 0.25% cuts in 2025 and another in early 2026 — will provide a strong foundation for increased ETF inflows into gold.
In a recession scenario, gold could rise to $3,410 per ounce. If gold demand surges as a hedge — similar to levels seen during the COVID-19 pandemic — prices could reach $3,680 per ounce by the end of 2025.
Key Risks to Watch
Upcoming trade tariffs under Trump's policy, set to begin on April 2
U.S. fiscal adjustments that could affect market sentiment
Easing geopolitical tensions that may reduce safe-haven demand
Gold is currently trading at around $3,024 per ounce, up over 15% this year, reaching all-time highs due to rising economic and geopolitical uncertainties.