Goldman Sachs Research Predicts Gold Prices to Surpass $3,700 per Troy Ounce by the Year 2025

Goldman Sachs Research has made a bold prediction that gold prices will reach an unprecedented $3,700 per troy ounce by the end of 2025. This forecast, if realised, would mark a significant increase from the current prices and set new records for the precious metal.

The rise in gold prices is expected to be driven by a combination of factors, with central bank buying and increased participation from Exchange-Traded Fund (ETF) investors playing key roles. In fact, global gold ETF holdings currently represent about 1% of total US Treasuries outstanding and 0.5% of the S&P 500 market capitalization, indicating a growing interest in the yellow metal.

Thomas from Goldman Sachs Research has highlighted the importance of ETF investor participation in the gold rally. He emphasises the greater potential for gold as a diversifying asset in global investment portfolios, especially during equity market downturns when traditional hedges such as US Treasuries may not provide sufficient protection.

The outlook for gold prices is positive, with predictions suggesting that they could reach new records. This high confidence in gold as a stable and profitable investment asset in uncertain times is reflected in the increased focus on gold among traders, investors, and central banks.

Central bank purchases have been a significant factor in the increase in gold prices since 2022. In fact, the Polish National Bank acquired the highest gold amount in 2025, with 67 tons purchased so far this year.

Goldman Sachs Research also anticipates that ETF investors will increase their holdings in gold, which could further drive prices higher. In a recession scenario, gold prices could reach up to $3,880 per troy ounce, according to the research firm's estimates.

However, it's important to note that Goldman Sachs Research does not predict that an asset's past performance determines its projected future performance. As with any investment, there are inherent risks associated with gold trading activities.

In conclusion, the participation of ETF investors, along with central banks, will likely drive gold prices to higher levels than before. If Goldman Sachs' predictions come to fruition, it could signal a significant shift in the global investment landscape, with gold becoming an increasingly important diversifying asset in portfolios.

Goldman Sachs Research Predicts Gold Prices to Surpass $3,700 per Troy Ounce by the Year 2025