Goldman Sachs and UBS have raised their year-end gold price forecasts, signalling stronger expectations for the precious metal as global economic uncertainties persist.
The revisions come at a time when gold has reached new record levels, driven by sustained investor demand, concerns around inflation, geopolitical tensions, and growing risks of a potential global slowdown.
Both brokerages said recent price movements and broader macroeconomic signals support a higher trajectory for gold. They pointed to rising central bank purchases, increased demand from institutional and retail investors, and limited supply flexibility as key drivers. Their latest views follow a sharp rebound in gold prices after a brief dip earlier this month triggered by fresh US trade measures.
A key common factor behind Goldman Sachs’ and UBS’ forecasts is sustained demand from central banks, which has exceeded earlier expectations. The firms also noted that recession risks and continued market volatility are likely to support gold’s status as a safe-haven asset through the remainder of the year.
Goldman Forecast
Goldman Sachs has revised its year-end gold price forecast to $3,700 per ounce, up from its earlier estimate of $3,300 per ounce. The brokerage said gold prices touched a record high of $3,245 per ounce on April 11, recovering from a 5% decline earlier in the month following US tariff announcements.
The upward revision was driven by stronger-than-expected demand from central banks and heightened recession risks, which have led to increased ETF inflows. Goldman Sachs added that if a recession materialises, gold prices could rise further to $3,880 per ounce by the end of the year.
UBS Forecast
UBS has also lifted its gold price forecast, now projecting the yellow metal to rise to $3,500 per ounce this year. The brokerage said the revised target reflects growing tariff uncertainty, weaker economic growth, persistent inflation, and geopolitical risks.
The firm added that despite a broadly bullish outlook across the market, there remains scope for prices to climb further. UBS expects demand from the official sector, long-term asset managers, macro funds, private wealth, and retail investors to support prices. It also noted that supply constraints may worsen market liquidity issues and amplify price movements.
India Prices
Gold prices in India rose to Rs 93,440 per 10 grams on Tuesday. On the Multi Commodity Exchange, June 5 gold futures traded slightly lower at Rs 93,288 per 10 grams. Global spot gold prices fell 0.37 percent to $3,224.8 per ounce, according to the World Gold Council.
. Read more on Markets by NDTV Profit.Goldman Sachs and UBS lifted their gold price targets for 2025, citing stronger central bank buying and recession risks, as gold hit a record high of $3,245 per ounce on 11 April. Read MoreMarkets, Business
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