With tariff fears, inflationary concerns a potential recession, and strong central bank buying, gold is at record highs above $3,100.
From here, gold could rally to $3,500 says Bank of America. “Uncertainty around Trump Administration trade policies could continue to push the [U.S. dollar] USD lower, further supporting gold prices near-term,” added the firm, as quoted by CNBC.
Analysts at Goldman Sachs also raised its gold price forecast, now noting, “We raise our end-2025 forecast to $3,300/toz (vs. $3,100) and our forecast range to $3,250-3,520, reflecting upside surprises in ETF inflows and in continued strong central bank gold demand.” All of which should also drive gold stocks, like Newmont even higher.
Fueling even more momentum, China’s central bank is still buying gold. In fact, its reserves soared to 73.61 million troy ounces at the end of February from 73.45 million in January. “Global central banks, a major source of gold demand, bought more than 1,000 metric tons of the metal for the third year in a row in 2024 and are expected to remain active buyers in 2025, according to the World Gold Council,” added Reuters.
Sincerely,
Ian Cooper
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