Gold price poised for continued strength in 2025 as analysts raise targets

A number of commodity analysts are confident that gold prices will continue to reach new levels in 2025.

The gold price touched a record high overnight and is currently trading around US$2,999 per ounce on the back of reports of modest US inflation growth and the impacts of President Donald Trump’s ongoing tariff strategy.

The changing financial landscape and the potential for the US Federal Reserve to consider a rate cut this year have led several Wall Street analysts to raise their price targets.

Boosted inflation expectations

Leading financial institution Macquarie Group is now forecasting that gold will reach US$3,500/oz in the third quarter.

“Year to date, gold has been running ahead of our expectations,” Macquarie head of commodities strategy Marcus Garvey wrote in a note.

“President Trump’s rapid move to announce, if not always to enact, import tariffs has contributed to geopolitical uncertainty and boosted inflation expectations.”

“[This has helped] push down front-end real rates and support gold in the face of periodic US dollar strength and initially reduced expectations for Fed rate cuts.”

Broad-based uncertainty

French universal bank BNP Paribas has suggested gold would move above US$3,100/oz in the second quarter.

“The Trump administration issuing a slew of tariff threats and the realignment of international relationships have added a new layer of macroeconomic and geopolitical uncertainty, providing a significant boost to gold,” BNP senior commodities desk strategist David Wilson suggested.

Goldman Sachs also recently forecast that the price of the precious metal would hit US$3,100/oz by the end of 2025.

Central bank demand

Goldmans analyst Lina Thomas noted that the price of gold had surged more than 40% since the start of January 2024, repeatedly shattering records.

Ms Thomas expects the rally in gold to continue on the back of demand from central banks.

Goldman Sachs research also anticipates increased purchases of gold exchange-traded funds will boost the gold price, with declining interest rates helping make gold a more attractive investment.