Goldman Sachs, a prominent international investment bank, predicts that by the end of 2025, the price of gold will have increased to $3,100 per ounce.
Ghana would benefit from this since the government will be able to collect more money from exports.
Central banks’ higher-than-expected demand for gold is the basis for the revised prediction.
Prior to this, it was predicted that gold would increase to $2,890. The price of the precious metal right now is $2857.83.
Since the beginning of 2024, the price of gold has increased by over 40%, breaking records over and time again.
According to Goldman Sachs, since Russian central bank assets were frozen in 2022, central banks have been building up their reserves of the commodity. This came after Ukraine was invaded by Russia.
Prior to that, the London over-the-counter gold market had an average monthly institutional demand of 17 tons. That number reached 108 tonnes in December of last year.
As lowering interest rates make gold a more appealing investment, Goldman Sachs Research expects an additional lift to the price of gold from greater purchases of gold ETFs in addition to the increased demand from central banks.
“Those factors may be somewhat offset by speculators reducing their net long positions on gold in futures markets, which is projected by Goldman Sachs Research to weigh on the gold price somewhat. Speculators’ net long positions are high because of the demand for gold as a safe haven asset, a phenomenon that could be short-lived if markets become more confident about the economic and political environment,” analyst Lina Thomas stated.
“That said, “if policy uncertainty, including tariff fears, stays high, higher speculative positioning for longer could push gold prices as high as $3,300 per troy ounce by year-end,” Lina Thomas concluded.
Source: newsthemegh.com