Gold price outlook: Goldman Sachs predicts that gold is most likely to experience a price increase in the near future due to its popularity as a risk hedge. The bank believes that upcoming US Federal Reserve rate cuts will attract Western capital back into the gold market, which has been largely absent during the sharp rally in gold prices over the past two years.
According to a Reuters report, Goldman has adjusted its gold price target to $2,700 by early 2025, slightly later than its previous forecast of end-2024, citing the price sensitivity of the Chinese market.
Spot gold has surged 21% so far this year, setting successive records and reaching a historic high of $2,531.60 per ounce on August 20.
However, the bank has taken a more cautious approach to other commodities, particularly oil, as it anticipates a smaller deficit this summer and a slightly larger-than-expected surplus in 2025