Gold has been on a relentless climb, breaking through record highs with ease. Just a few weeks ago, I was writing about how gold prices had broken above $2,800/oz.—then, just one week later, they topped $2,900/oz. As I write this, gold prices are closing in on the $3,000/oz. price level—and I’m not the only one expecting a bright future for the precious metal.
Major banks are taking notice of gold’s performance.
Institutions like Goldman Sachs and UBS have lifted their price forecasts for gold in 2025, signaling expectations that this rally still has room to run. On February 18, 2024, Goldman Sachs lifted its year-end price target for gold to $3,100/oz. but also wrote that “higher speculative positioning for longer could push gold prices as high as $3,300 an ounce by year-end” in a note.
In a separate note published the same day, the Swiss multinational bank UBS wrote that they could see gold soon reaching $3,200/oz.
Each bank provides similar reasoning for near-term lifts.
In their note, analysts from Goldman Sachs say “structurally higher” demand from central banks for the precious metal would contribute to demand, as well as uncertainty around policies in the United States and abroad.
In UBS’s note, their analysts put it this way: “A more forceful rally relative to our previous expectation is likely to be driven by deep-rooted bullish sentiment, with gold seen as a safe-haven asset amid a highly uncertain and volatile macro environment.”
Both of these analyses reflect uncertainty in the global economy. However, these are only short-term predictions.
Over the long term, gold prices could soar much further according to our President, Philip N. Diehl.
I’m going to let our company president and former U.S. Mint Director Philip N. Diehl close our “Gold News & Views” for this week. Here’s what Director Diehl recently told me about gold’s current long-term rally, where he thinks gold is headed in 2025, and what his message would be for those still sitting on the fence as to whether now is the right time to buy gold:
“Is it too late to buy gold? Of course not, and here’s why: When you look at how gold has performed over the last 25 years, gold has done extraordinarily well in both good and bad times. That’s why the long-term trend continues to show growth for gold and why we’re so optimistic about where gold prices are going.
“In January, I forecasted that gold would rally past $3,000/oz. Now, only weeks into the year, it sits just short of that target after rising $900/oz. and topping returns on the S&P 500 and the Nasdaq over the past year. Momentum is now so strong, I expect gold to maintain this pace and reach $3,700/oz. by year-end.”
Who am I to argue with the expert?
