What is Goldman Sachs' gold price forecast for 2025 and what factors could drive it higher?

Goldman Sachs has raised its gold price forecast to $3,100 per ounce by the end of 2025, citing concerns over US fiscal sustainability as a key driver. According to their analysis, if these fiscal concerns escalate further, gold could rise an additional 5% to reach $3,250 per ounce by December 2025. The forecast is supported by growing fears of inflation and fiscal instability, which could trigger higher speculative positioning and stronger ETF inflows in the gold market. This outlook reflects gold's traditional role as a hedge against economic uncertainty, with the potential for significant price appreciation as investors seek safe-haven assets amid financial risks.