Major banks adjust gold price forecasts amid central bank buying and economic uncertainties, with estimates ranging from $2700 to $3300.
Gold Price Outlook: Morgan Stanley and Goldman Sachs Revise Q4 Forecasts
Gold is getting nearer to reaching the $3000 per troy ounce milestone as major financial institutions revise their forecasts for the quarter of 2025.
Goldman Sachs has raised its year-end prediction to $3100 per ounce from $2890 due to central bank acquisitions and increased investments in gold-backed ETFs, leading to the adjustment in forecasted value by the company’s experts who also anticipate that continuous economic instability, such as tariff dilemmas, could potentially push prices up to $3300 per ounce by the end of the year.
Morgan Stanley is taking an approach by predicting a Q4 target of $2700 per ounce for gold prices. The bank is concerned that higher prices could potentially dampen demand from consumers and investors, a phenomenon known as “demand destruction.” Additionally, a surge in gold recycling may lead to an uptick in supply, subsequently pushing prices down.
Gold’s price surge has been influenced by factors like tensions and increased central bank reserves coupled with declining interest rates recently. The uncertainties surrounding trade agreements and discussions on imposing tariffs might impact gold prices in the upcoming months too.
The differing predictions showcase the uncertainty of the market as investors balance uncertainties with demand from central banks and ETF investments.
