Gold prices have surged this year on the back of robust central bank purchases and strong inflows into gold exchange-traded funds (ETFs), prompting bullish forecasts across Wall Street. Goldman Sachs recently reiterated its buy gold recommendation, raising its year-end 2025 price forecast from $2,890 to $3,100 per ounce, citing persistent demand from global central banks.
Following a significant rally last year, gold prices in 2025 have continued to climb, posting seven consecutive weeks of gains and repeatedly setting new record highs. This unrelenting momentum has effectively silenced the gold market’s bearish voices. According to the latest market surveys, 89% of analysts predict that gold prices will keep rising; in another snapshot, 15 out of 16 analysts (94%) believe gold prices will continue to climb in the coming week.
Goldman’s optimistic outlook aligns with other major investment banks on Wall Street.
These reports emphasize that ongoing trade disputes, possible inflationary pressures, and fiscal risks facing certain central banks are driving them to step up gold purchases. According to Goldman Sachs analysts Lina Thomas and Daan Struyven, monthly global central bank gold demand could average 50 metric tons—well above previous forecasts. Data from the World Gold Council and Bloomberg indicate that central banks in Poland, India, and China have all been noteworthy buyers of gold recently. Analysts expect this trend toward diversification of reserves to lend continued support to gold prices.
Over the past 12 months, gold has gained more than 45%, significantly outperforming the benchmark global stock indices.
Meanwhile, safe-haven demand from investors looking to hedge against uncertainty has also picked up considerably. Year to date, gold ETF holdings have risen by more than 1%, though there is still room to grow before reaching the all-time highs set in 2020 amid the pandemic. Market observers believe that a potential rate cut from the Federal Reserve and continued monetary stimulus in multiple countries will likely sustain global investors’ interest in gold.
Recent tariff policies from the Trump administration have also added fuel to the upward momentum in gold prices. Goldman Sachs notes that if tariff concerns and other uncertainties persist, gold could test $3,300 later this year. Adrian Ash, research director at BullionVault, attributed gold’s short-term rally to “Trump, Trump, and Trump,” underscoring market vigilance on U.S. trade policy. Kyle Rodda of Capital.com noted a wave of gold buying tied to worries that the United States might impose additional tariffs.
Looking ahead, many signs suggest that gold, as a safe-haven asset, may continue to shine amid mounting global political and economic uncertainty. Goldman’s latest forecast is emblematic of the broader sentiment on Wall Street: with the future direction of U.S. trade tensions still unclear, gold appears to be in the fast lane of a renewed bull market. Whether the price can breach $3,100 or even $3,300 remains to be seen, but for investors, the signals coming from the gold rally are too significant to ignore.
