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Goldman Sachs Group Inc has listed gold among the many high commodity trades for 2025 and says costs may lengthen positive factors throughout Donald Trump’s presidency.
Gold could obtain a goal of $3,000 an oz by December 2025, says Goldman Sachs’ analysts.
Even as gold rates touched an all-time excessive in October earlier than pulling again reasonably, Goldman Sachs Group has mentioned the value of the dear yellow metallic will rally to report subsequent yr on central financial institution shopping for and US rate of interest cuts.
Goldman Sachs Group Inc has listed gold among the many high commodity trades for 2025 and mentioned costs may lengthen positive factors throughout Donald Trump’s presidency.
“Go for gold,” analysts together with Daan Struyven mentioned in a word, reiterating a goal of $3,000 an oz by December 2025. The structural driver of the forecast is greater demand from central banks, whereas a cyclical raise would come from flows to exchange-traded funds because the Federal Reserve cuts, they mentioned.
On Monday, gold was buying and selling greater by 0.85 per cent at $2,585.2 an oz within the worldwide market. Silver was additionally up by 1.36 per cent at $30.70 an oz.
Gold has skilled a powerful rally this yr, reaching a number of report highs earlier than retreating barely following Donald Trump’s White House victory, which strengthened the greenback. The rally has been fuelled by elevated purchases by central banks and the Federal Reserve’s shift towards looser financial coverage. Goldman Sachs analysts famous that the Trump administration may additional bolster gold’s enchantment.
“An unprecedented escalation of commerce tensions may revive speculative positioning in gold,” they acknowledged. Additionally, issues in regards to the sustainability of US fiscal insurance policies may present additional help for gold costs. Central banks, significantly these with vital US Treasury reserves, could enhance their gold holdings, the analysts added.
In different markets, Brent crude costs are anticipated to vary between $70 and $85 per barrel subsequent yr. However, there’s a potential for short-term upside if the Trump administration intensifies efforts to limit Iran’s oil exports. Base metals stay extra favorable than ferrous metals, whereas European fuel markets may face short-term worth spikes as a consequence of weather-related elements.
“The new US administration additional raises the dangers to Iran provide,” analysts highlighted, pointing to the potential for stricter sanctions enforcement underneath a maximum-pressure marketing campaign. They additionally famous that “a possible strengthening in US help to Israel could enhance the chance of disruptions to Iran’s oil belongings.”
