Goldman Sachs lowers its gold price forecasts and delays its $3,000 target.

American investment bank Goldman Sachs has revised its gold price forecasts for 2025, postponing its previous prediction for gold to reach $3,000 per ounce by the end of 2025. The Wall Street giant now expects the yellow metal to reach $3,000 by mid-2026, citing a slower pace of gold price increases in the coming years.

While Goldman Sachs analysts maintained a generally bullish outlook on gold prices, the bank predicts a gradual increase in prices compared to previous forecasts. The analysts explained that the rise in gold prices will be driven by factors such as ongoing global inflation, economic uncertainty, and the possibility of a weaker U.S. dollar. However, they now expect a longer timeline for gold to reach the $3,000 target.

Despite the challenges that gold may face in the near term due to the slowing pace of interest rate cuts by the U.S. Federal Reserve, Goldman Sachs remains optimistic about gold's long-term prospects. Analysts point to ongoing geopolitical risks, including tensions between major economies, and the potential for central banks to continue buying gold as part of their diversification strategies.

Additionally, Goldman Sachs expects that concerns about the stability of the global financial system, including the risk of recession in major economies, will support demand for safe-haven assets, with gold being the most prominent. Gold's role as a hedge against inflation and a store of value is expected to remain strong, especially if global economic conditions remain uncertain. The updated forecasts from Goldman Sachs align with the broader view among analysts that gold will continue to be an important part of investment portfolios in the coming period.