Goldman Sachs raises its gold price forecast for early 2025

Firstly, they anticipate faster declines in short-term interest rates in Western countries and China, adding that the gold market “doesn’t fully price in the rates boost to Western ETF holdings backed by physical gold yet, which tends to be gradual.”

Secondly, ongoing robust purchases by emerging market (EM) central banks in the London over-the-counter (OTC) market are expected to continue fueling the gold rally that began in 2022. Strategists believe “that these purchases will remain structurally elevated.”