The price of gold continues to smash records at a canter and some on Wall Street reckon it may yet head higher still from where its presently at.
In U.S. trading on Tuesday, the price of the precious yellow metal hit another record high soaring above $2,950 per troy ounce to lurk within touching distance of the psychological $3,000 level.
At 1:46 pm EST, traders stateside saw the Comex Gold April contract up 1.73% or $50.20 to $2,950.90 per troy ounce. Meanwhile, spot trading for gold in Dubai was firing on all cylinders earlier in the session, fetching a price of $2,933.19, up 1.26% or $36.63.
Spectacular gains over January and February follow a gold price uptick of 24% in 2024. Those gains largely came courtesy of interest rate cuts by the U.S. Federal Reserve in the latter half of 2024.
Furthermore, investors seeking a safe haven in a volatile world also parked their money in gold bullion in ever greater numbers despite it being a non-yielding asset, and sparked a demand frenzy.
As did several central banks, reminiscent of their actions during the global financial crisis 2008-09 and the transition to a low interest rate climate.
Wall Street Expects More Of The Same
Many on Wall Street expect the rally to continue well into 2025 and well past the $3,000 level. Overnight, Goldman Sachs raised its year-end gold price forecast for 2025 to $3,100 per ounce, up from $2,890.
It now expects that “structurally higher central bank demand” may “add 9% to the gold price by year-end,” combined with a gradual boost to ETF holdings as the funds rate declines.
This, in Goldman Sachs’ opinion, should outweigh the drag from normalizing investor positioning. Of course, that’s assuming global uncertainty diminishes which appears to be a talk ask at the moment.
And should policy uncertainty, including tariff concerns, remain high, the bank suggests gold prices may potentially surge to $3,300 by year-end due to extended speculative positions by traders.
Goldman Sachs also revised its central bank demand assumption upward to 50 tonnes per month, from its previously published estimate of 41 tonnes.
‘Go For Gold’
The bank concluded its market assessment by reiterating its “go for gold” call and suggested that long gold positions remain a strong hedge, even if a potential decline in uncertainty may lead to a pullback in prices.
Goldman Sachs might be among the most optimistic of forecasters on Wall Street, but it is not alone in its enthusiasm about the possibility of yet higher gold prices.
Strategists at UBS may not have bought the idea of $3,000-plus prices just yet, but wrote in an investment note that: “It is always tricky to chase the market higher and uncomfortable when everyone seems to be on the same side of the trade.
“But it also does not make sense to call for the end of gold’s bull run simply because it has reached yet another record and has already rallied ~10% YTD.”
The Swiss bank has lifted its year-end gold price target to $2,900 from $2,800 and also increased its end-2026 target to $2,900 from $2,850.
As the gold rally continues somewhat unabated in the current geopolitical and macroeconomic climate, investors may expect a few more upward price projections coming their way from Wall Street soon.