Gold prices may soar even higher in 2025 according to Goldman Sachs.
The investment bank increased its year-end price target for gold to USD$3,100 an ounce on Tuesday, from its previously stated price of USD$2,890. Structurally higher central bank demand will increase 9 per cent to the price of gold by year’s end, and also helped by a slight boost from ETF holdings.
Goldman also said that concerns regarding President Trump’s tariffs could present a significant risk to gold prices.
“However, if policy uncertainty — including tariff fears — stays high, higher speculative positioning for longer could push gold prices as high as $3,300 an ounce by year-end,” said Lina Thomas, Goldman strategist.
Precious metals like gold are performing well two months into the year as investors hedge against stocks amid uncertainty over policy from the Trump administration and the Federal Reserve.
Gold prices have risen 9.7 per cent this year to $2,925 an ounce, hovering near record highs. Over the past year, gold has climbed 43 per cent. In comparison, the S&P 500 and Dow Jones Industrial Average have gained more than 20 per cent and 15 per cent, respectively.
Meanwhile, silver prices have surged over 40 per cent this year, while platinum prices have increased by more than 10 per cent.
Stocks tied to the gold trade have strengthened.
Shares of Calibre Mining Corp (TSE: CXB) (OTMRKTS: CXBMF) have climbed 40 per cent this year, currently trading at USD$3.03. Meanwhile, shares of gold miner Barrick Gold Corp’s (TSX: ABX) (NYSE: GOLD) have risen 16 per cent year to date. At the same time, the SPDR Gold Shares ETF has added 10 per cent.
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Barrick Gold posted highest net earnings in a decade
Barrick Gold, in particular, is benefiting from gold’s record rally.
The miner posted its highest net earnings in a decade last year. Operating cash flow in the fourth quarter increased 18 per cent to USD$1.4 billion, bringing the annual total to USD$4.5 billion. This is the highest level since 2020. Barrick Gold spent $500 million on share buybacks last year and distributed USD$700 million in dividends.
“Gold is becoming more important as a safe haven in a geopolitically uncertain world,” said Mark Bristow, Barrick Gold’s CEO.
“Needless to say, it’s an exciting time to be a gold and copper miner with more upside in the commodity price, in my opinion, anyway.”
However, some traders believe gold prices are approaching a short-term pause due to their rapid ascent in value.
“There are signs of short-term exhaustion,” said Michael Reinking, New York Stock Exchange strategist.
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Calibre Mining is a sponsor of Mugglehead news coverage
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joseph@mugglehead.com
