"Goldman Sachs Raises Gold Price Forecast to $3,100 per Ounce by 2025"

Goldman Sachs Raises Gold Price Forecast to $3,100 per Ounce by 2025

Goldman Sachs has revised its gold price forecast upward, projecting the precious metal to reach $3,100 per ounce by the end of 2025. The new estimate, up from the bank’s previous projection of $2,890, is driven by strong central bank demand and growing investor interest amid declining interest rates.

The forecast signals positive prospects for Ghana, one of Africa’s top gold producers, as higher gold prices could bolster export revenues and improve the country’s trade balance.

Surging Demand from Central Banks

Gold prices have climbed more than 40% since early 2024, consistently setting new records. As of now, gold is trading at $2,857.83 per ounce. Goldman Sachs attributes much of this surge to sustained central bank purchases, which accelerated following the freezing of Russian central bank assets in 2022.

Prior to the Russia-Ukraine war, central banks purchased an average of 17 tonnes per month on the London over-the-counter gold market. However, by December 2023, that figure had soared to 108 tonnes, underscoring the metal’s increasing role in global reserves.

Impact of Lower Interest Rates and Speculation

In addition to central bank accumulation, Goldman Sachs Research expects gold-backed exchange-traded funds (ETFs) to provide further price support as lower interest rates enhance gold’s appeal as a non-yielding asset.

However, speculative positioning in futures markets could temper gains. “Those factors may be somewhat offset by speculators reducing their net long positions on gold in futures markets,” said Lina Thomas, analyst at Goldman Sachs Research.

Potential Upside to $3,300 per Ounce

Thomas noted that gold’s status as a safe-haven asset has attracted significant investor interest amid global economic and geopolitical uncertainties. If policy risks—such as trade tariffs and geopolitical tensions—remain high, speculative interest could persist, pushing gold prices as high as $3,300 per ounce by year-end.

As global markets navigate inflationary pressures and monetary policy shifts, Ghana’s gold sector stands to benefit significantly from the rally in bullion prices, reinforcing its position as a key player in the global gold trade.