Synopsis
Goldman Sachs predicts that international gold prices could rise to $4,500 per ounce, nearly 38% higher than current levels, driven by escalating trade tensions and recession fears. This analysis marks a significant upward adjustment in gold price targets.Key Takeaways
- Gold prices may reach **$4,500 per ounce** by the end of 2025.
- Rising trade tensions are driving demand for gold.
- Investors are increasingly viewing gold as a **safe-haven asset**.
- **Central banks** are purchasing gold to reduce dollar reliance.
- Gold saw a **6.5% increase** last week, its best performance since **COVID-19**.
New Delhi, April 14 (NationPress) International gold prices are projected to rise to $4,500 per ounce due to escalating trade disputes, reflecting an increase of almost 38 percent from the present price of $3,247 per ounce, as per a report by Goldman Sachs.
The firm highlighted the intensifying US-China trade conflict and mounting apprehensions regarding a potential global recession. In a high-risk scenario, Goldman Sachs anticipates that gold prices could reach $4,500 per ounce by the close of 2025.
In a more typical scenario, they predict gold will hit $3,700 per ounce by the end of 2025.
This marks the third occasion that Goldman Sachs has adjusted its year-end 2025 gold target upward, having previously raised it to $3,300 per ounce.
The investment bank noted that rising worries concerning the US economy, fueled by the escalating trade conflict with China, have led to increased demand for gold as a safe-haven asset.
Last week, gold prices surged by 6.5 percent, achieving their best weekly performance since the COVID-19 pandemic began.
Analysts attribute this significant increase to the growing global instability following President Donald Trump’s reciprocal tariffs, which have contributed to market volatility and driven investors towards gold.
Market analysts indicate that recession fears, increasing bond yields, and overall financial instability are causing investors to seek refuge in gold.
Not only individual investors but also institutions and central banks are ramping up their gold acquisitions, bolstering prices significantly.
The rapid increase in gold prices coincides with a sell-off in traditional safe-haven assets such as US stocks and Treasury bonds.
The first quarter of this year recorded the highest investment in gold-based exchange-traded funds (ETFs) since 2020.
Central banks, particularly in emerging markets, are significantly increasing their gold purchases to minimize dependence on the dollar.
As skepticism around Trump’s aggressive trade strategies continues to grow, experts believe that investors will likely continue to channel funds into gold in the upcoming months.
