Goldman Sachs Opens a Long Gold Trade Recommendation

Goldman Sachs. Image by Cadista/Depositphotos

Analysts at banking giant Goldman Sachs believe gold is the best long-term investment for the future while predicting the continuation of the recent rally for the precious metal.

In a recent research note, Goldman Sachs put a 2025 target price for gold at 2,700 per ounce compared to this week’s price of around $2,500. Additionally, the bank’s analysts opened a “long gold trade recommendation.”

Goldman Sachs’ bullish stance on gold was prompted by assets’ position as a hedge against geopolitical and financial instability and expected interest rate cuts by the Federal Reserve. Additionally, there is structural support for gold in place thanks to increased buying from central banks, which tripled compared to levels in 2022.

“Our preferred near-term long is gold. It remains our preferred hedge against geopolitical and financial risks, with added support from imminent Fed rate cuts and ongoing EM central bank buying,” Goldman Sachs analysts wrote.

Several other analysts have been also predicting a great performance for gold in the near future, with some of them even predicting it will clear the $3,000 per ounce at some point in 2025.

Gold has been the best-performing asset so far in the year, trailing only cryptocurrencies. The precious metal is currently 22.18% up year-to-date.

Tom P
Tom loves sports so much but prefers watching other people do it. He prefers not to share what teams he's supporting but he is willing to admit that Lebron James is the king. Other than sports, he's interested in stock markets and food.