Sky to the Moon! Goldman and UBS Raise Gold Price Target to Record Amid Central Bank Buying, Geopolitical Risks

Gold prices are expected to stand above $3,000 per ounce very soon, according to a consensus among major Wall Street analysts, as the yellow metal's stunning performance in 2025 is just beginning. Goldman Sachs and UBS have both revised their forecasts for gold. Following a period of underinvestment and growing demand from the official sector, analysts predict that gold could hit new heights by the end of 2025.

Spot gold is currently hovering around $2,910, with an almost 10% year-to-date increase as risk-averse sentiment keeps demand high amid Trump administration tariff risks and international geopolitical uncertainty.

Goldman Sachs has raised its year-end 2025 gold price forecast to $3,100 per ounce, sharply up from a previous projection of $2,890. The investment bank attributes this increase to sustained central bank demand, which it expects to push gold prices up by 9% by year-end. Goldman Sachs also sees additional upside potential if uncertainties—such as tariff concerns—continue to linger, with prices potentially reaching as high as $3,300 per ounce under high-uncertainty conditions. Additionally, if central bank purchases average 70 tonnes per month, gold could climb to $3,200 per ounce by the end of 2025. The Go for Gold trading strategy remains strong, as gold positions serve as a robust hedge against various economic risks, including potential trade tensions and recessionary threats.

Meanwhile, UBS has also updated its gold price forecast, now projecting that the metal could reach over $3,200 before stabilizing at elevated levels in the coming years. This represents an upward revision from their earlier peak prediction, driven by strong bullish sentiment, underinvestment, and robust official sector demand.

It seems that so much has already happened and it is only February. While this sentiment probably applies across financial markets in 2025, gold in particular has seen unprecedented market dislocations and record-high prices in just over six weeks since the start of the year, UBS strategist Joni Teves said in a note.

Our latest assessment of market conditions prompts us to update our gold views and revise our price forecasts higher. These changes bring forward the peak to the latter part of 2025, with gold reaching a higher level than what we had before.

While both banks are bullish on gold, UBS also notes that silver and platinum could outperform gold in terms of percentage gains, benefiting from their correlation with the precious metal and favorable supply-demand dynamics. However, silver's volatility could pose risks due to its dual nature as both a precious and industrial metal, while platinum's appeal might be limited by less liquid market conditions.

For now, the focus remains on gold, with both Goldman Sachs and UBS seeing significant potential for further price increases. As market conditions evolve, the outlook for gold remains strong, with $3,200 per ounce now within reach, and potentially higher prices on the horizon depending on central bank actions and broader economic factors. Investors should remain watchful, as the sky to the moon rally for gold continues to gather momentum.