Goldman Sachs no longer expects gold to reach $3,000 by year-end

Goldman Sachs expects gold prices to reach $3,000 per ounce by mid-2026, instead of its previous forecast to reach this level by the end of 2025.

In a note, as reported by Bloomberg, the bank cited slower-than-expected monetary easing by the Federal Reserve as the main reason for the delay in reaching that level.

Analysts at the bank, Lina Thomas and Daan Struyven, predict that gold will reach $2,910 per ounce by the end of this year, amid weaker demand for exchange-traded funds (ETFs) backed by the yellow metal and a decline in market uncertainty following the US elections.

The bank also forecasts that central bank gold purchases will average 38 tons per month by mid-2026, noting that the appetite of central banks will remain a key driver of gold prices in the long term.

These expectations come after gold prices surged by about 27% in 2024, supported by monetary easing, safe-haven demand, and central bank purchases. However, the rally halted in November following the outcome of the US elections.

Regarding US interest rates, the bank expects a 75-basis point cut this year, down from its previous forecast of 100 basis points.