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Goldman Sachs Predicts Gold Prices To Surge To $3,700 By Late 2025

In a bold forecast, Goldman Sachs has increased its gold price prediction to $3,700 per ounce by the end of 2025. This adjustment comes amid unexpected demand from central banks and a strengthening perception of recession risks, drawing investors towards gold ETFs.

Key Points

  • Initial forecasts pegged the price at $3,300, but central banks’ monthly gold acquisitions, averaging 80 tons — much higher than the 17-ton average before 2022 — have warranted a forecast revision.
  • Gold prices have already seen a significant increase of over 23% in 2025, surpassing the $3,200 mark for the first time.
  • Should central banks continue acquiring at an accelerated pace, or if a recession prompts a capital influx into ETFs, gold could rise to $3,880 within this year.

What To Watch

Economists estimate a 45% chance of a U.S. recession within 12 months, potentially redirecting capital to gold ETFs. Should central banks ramp up purchases to 100 tons monthly, or recession-driven demand persist, gold might reach $3,880 by year-end. Alternatively, if economies show resilience and political uncertainty lessens, gold prices could stabilize around $3,550.

Norway’s Wealth Fund Faces a Tech-Induced Setback

The world-renowned Norwegian sovereign wealth fund, valued at $1.7 trillion, has experienced its most significant loss in a year and a half. Recent figures from Norges Bank Investment Management reveal a 0.6% loss, equaling a staggering $40 billion, primarily driven by a downturn in technology stocks in Q1 of the year.

The volatility of the global market, particularly the tech sector, has deeply affected this financial behemoth, which stands as the largest single shareholder of publicly traded companies worldwide. This marks the largest dip in the fund’s investments since late 2023. To explore how similar economic movements could impact other sectors, check out our insights into Cyprus’ recent economic growth and how technology’s influence continues to ripple across global markets.

For a broader view of market fluctuations and their implications, you might also be interested in our coverage of Revolut’s inspiring financial success story from last year.

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