New Delhi— International gold prices could surge to $4,500 per ounce amid rising trade tensions and growing fears of a global recession, according to a new report by Goldman Sachs. The projection marks a nearly 38% increase from the current price of $3,247 per ounce.
In a high-risk scenario, the financial firm said gold could climb to $4,500 per ounce by the end of 2025. Under more typical market conditions, Goldman expects prices to reach $3,700 per ounce.
This marks the third time the investment bank has raised its year-end 2025 gold forecast. Previously, it had revised the target upward to $3,300 per ounce.
Goldman Sachs cited escalating tensions between the U.S. and China and heightened concerns about the U.S. economy as key drivers of increased demand for gold as a safe-haven asset.
Gold prices rose 6.5% last week—marking their strongest weekly performance since the COVID-19 pandemic—amid growing global uncertainty. Analysts attribute the rally to mounting instability triggered by President Donald Trump’s latest round of reciprocal tariffs, which have fueled market volatility and driven investors toward gold.
Market experts note that recession fears, rising bond yields, and broader financial instability are prompting a widespread shift to gold.
Institutional investors and central banks, alongside individuals, are significantly increasing their gold purchases, lending strong support to prices. In fact, the first quarter of 2025 saw the highest investment in gold-backed exchange-traded funds (ETFs) since 2020.
Emerging-market central banks, in particular, are boosting their gold reserves as part of efforts to reduce reliance on the U.S. dollar.
With skepticism mounting over Trump’s aggressive trade policies, analysts believe gold will continue to attract strong inflows in the months ahead. (Source: IANS)
