The global outlook for gold has turned significantly more bullish as top global brokerages Goldman Sachs and UBS have sharply raised their price forecasts for the yellow metal, citing mounting economic risks, rising demand, and safe-haven appeal.
Goldman Sachs has upgraded its year-end gold price target to $3,700 per ounce, up from its earlier estimate of $3,300. The firm believes gold will play a crucial role in hedging against recession risk, as central bank buying continues to outperform expectations and renewed risk-off sentiment drives inflows into gold-backed ETFs.
Meanwhile, UBS has also revised its forecast, expecting gold to rally to $3,500 per ounce in 2025. The brokerage highlighted the growing need for diversification amid heightened concerns over global trade, economic uncertainty, and geopolitical tensions. UBS noted that while investor positioning in gold has increased, the trade is still not overcrowded. Additionally, the firm said that tight liquidity conditions could amplify price movements in the near term.
Both brokerages expect the rally in gold to extend into next year, with prices likely to stabilize at elevated levels over the medium term.
Disclaimer: The above views are those of the brokerages and not of the author or the publication. Please consult your financial advisor before making any investment decisions.
