"Goldman Sachs" increases its expectations for gold prices to $ 3.300 per ounce

The Goldman Sachs collection increased its forecast for the price of gold to $ 3,300 per gram by the end of the year, with a stronger request than the central banks, and strong flow to the alloys returned indicators. This optimistic tendency from the bank to the precious metal was manifested in the new expectations of analysts Lina Thomas and then Strewvin, which increased their price target last month until the end of 2025 to $ 3100 per gram. They wrote in a note released on Thursday that the average official demand for gold could reach about 70 tonnes per month this year, with an increase in their previous 50 tonnes estimates. The precious metal has increased by 15% so far this year and continued its strong profits last year, which he partially strengthened by the Federal Reserve in terms of financial facilitation. Prices have exceeded the most important psychological threshold of $ 3,000 an ounce for the first time this month, with investors using a safe asset, in light of President Donald Trump’s foreign policy and trade agendas, which holds the prospects for the global economy. An increase in purchases led by central banks, ‘Goldman Sachs’ analysts reported that the new expectations of a price of $ 3300 per ounce reflect an increase in purchases in the period from November to January, as central banks buy about 190 tonnes per month. They added that there are also expectations that China can continue to build gold at least three years. Thomas Westwinfee wrote: “Central banks – especially in emerging markets – have increased their gold purchases by five times since 2022, after freezing Russian reserves.” They added: “We consider it a structural shift in the behavior of reserve management, and we do not expect a reflection in this direction in the short term.” Analysts said the flow to the gold investment funds is ‘surprising’, with the possibility that the renewal of investors in hedging tools is the motivation behind this expansion. They reaffirmed their expectations to lower interest rates twice by the Federal Reserve this year. They said: “Although the flow of the traded investment funds usually follow the federal interest rates, history shows that it can exceed the maximum during long periods of total economic uncertainty, such as during the corona pandemic.” They added that the demand for hedging tools accelerates the promotion of current investment funds to reach their levels they reached during the pandemic in 2020, prices can reach $ 3680 per ounce by the end of the year.