Gold delivered an outstanding performance in 2024, with a 25.5% rate of return. However, in October, revised interest rates and an unexpectedly strong dollar curtailed the bull run — although the pause ultimately proved relatively short-lived.
Despite that temporary setback, analysts have generally remained bullish — in addition, most have kept their forecasts, opting instead to adjust the timeframes in question.
The latest upward leg of gold’s price action began in late December. By late January, the volatility injected into the markets by the unexpected success of DeepSeek drove investors away from stocks and toward the precious metal. Then, in early and mid-February, President Trump’s widespread and far-reaching use of tariffs drove gold prices even higher.
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By press time on February 18, an ounce of the precious metal was trading at $2,910, having marked a 10.86% gain since the start of 2025, and a 7.24% gain over the last 30 days.
Even with the yellow-hued metal’s extended rally taken into account, one financial titan has set a new, bullish price target on the commodity.
Goldman predicts modest 6.52% return for gold compared to current prices
Goldman Sachs, citing strong central bank demand, now sees the price of a gold ounce reaching $3,100 by the end of the year. This forecast implies a relatively modest 6.52% upside from current prices. The bank’s view is based on a recently revised internal forecast, which now sees central bank demand reaching 50 tons per month, up from the previous figure of 41 tons.
The investment bank also added that, should demand surge to 70 tons per month, gold could easily reach a price of $3,200 per ounce — a mark equating to a 9.96% increase compared to current prices.
In addition, Goldman Sachs also reflected on the commodity with regard to interest rates. Per the bank, if the Federal Reserve (FED) holds rates steady, the price of gold will likely reach $3,060 — however, rising fiscal risks could see prices surge to as high as $3,250, some 11.68% higher than at press time.
Finally, the bank reiterated an earlier ‘Go for Gold’ call, highlighting the precious metal’s role as a hedge against trade tensions, inflation, and recession risks.
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