Gold price outlook: Goldman Sachs predicts that gold is most likely to experience a price increase in the near future due to its popularity as a risk hedge. The bank believes that upcoming US Federal Reserve rate cuts will attract Western capital back into the gold market, which has been largely absent during the sharp rally in gold prices over the past two years.
According to a Reuters report, Goldman has adjusted its gold price target to $2,700 by early 2025, slightly later than its previous forecast of end-2024, citing the price sensitivity of the Chinese market.
Spot gold has surged 21% so far this year, setting successive records and reaching a historic high of $2,531.60 per ounce on August 20.
However, the bank has taken a more cautious approach to other commodities, particularly oil, as it anticipates a smaller deficit this summer and a slightly larger-than-expected surplus in 2025.
Also Read | Gold price outlook: Is precious metal still a good investment bet post import duty cut? Here’s why you shouldn’t dismiss it!
Goldman recently reduced its average 2025 Brent forecast and price range by $5 per barrel, attributing this adjustment to weak demand from China. The bank also expects a downward trend in global gas prices, as an anticipated increase in global liquefied natural gas supply capacity is expected to drive European natural gas prices (TTF) lower.
Regarding copper, Goldman has postponed its end-2024 target of $12,000 per metric ton to beyond 2025. The bank now forecasts an average copper price of $10,100 per ton in 2025, significantly lower than its previous estimate of $15,000.
This revision is due to the expectation that refined copper production will remain high despite mine supply issues in key copper-producing countries. The bank has also maintained a less optimistic outlook for other industrial metals, delaying its previous year-end target of $2,600 per ton for aluminum to end-2025 and lowering its 2025 forecast to $2,540.
Additionally, Goldman has decided to suspend its coverage of zinc for the time being and maintains a bearish view on nickel.
According to a Reuters report, Goldman has adjusted its gold price target to $2,700 by early 2025, slightly later than its previous forecast of end-2024, citing the price sensitivity of the Chinese market.
Spot gold has surged 21% so far this year, setting successive records and reaching a historic high of $2,531.60 per ounce on August 20.
However, the bank has taken a more cautious approach to other commodities, particularly oil, as it anticipates a smaller deficit this summer and a slightly larger-than-expected surplus in 2025.
Also Read | Gold price outlook: Is precious metal still a good investment bet post import duty cut? Here’s why you shouldn’t dismiss it!
Goldman recently reduced its average 2025 Brent forecast and price range by $5 per barrel, attributing this adjustment to weak demand from China. The bank also expects a downward trend in global gas prices, as an anticipated increase in global liquefied natural gas supply capacity is expected to drive European natural gas prices (TTF) lower.
Regarding copper, Goldman has postponed its end-2024 target of $12,000 per metric ton to beyond 2025. The bank now forecasts an average copper price of $10,100 per ton in 2025, significantly lower than its previous estimate of $15,000.
This revision is due to the expectation that refined copper production will remain high despite mine supply issues in key copper-producing countries. The bank has also maintained a less optimistic outlook for other industrial metals, delaying its previous year-end target of $2,600 per ton for aluminum to end-2025 and lowering its 2025 forecast to $2,540.
Additionally, Goldman has decided to suspend its coverage of zinc for the time being and maintains a bearish view on nickel.
