Goldman Sachs upgrades gold forecast to $3,700

Goldman Sachs has once again lifted its year-end price target for gold — this time to $3,700 an oz. — amid uncertainty surrounding the state of the global economy.

In a note issued late Friday, the bank upgraded its 2025 price target following gold’s impressive recovery from the market selloff triggered by the April 2 tariff announcements, which drove even the safe-haven metal down by as much as 5% to cover losses in other asset classes.

This represents the third time that Goldman upped its forecast for gold this year — and the most aggressive (+12%) of all.

ETF inflows

The first upgrade came in February, when the New York-based firm backtracked on its skepticism over gold reaching the $3,000-per-oz. milestone by setting a $3,100 year-end target. The second was in late March, when it lifted the target price to $3,300. Both times, the bank’s analysts cited strong demand from central banks and inflows into gold-backed exchange traded funds (ETFs).

Despite investors shedding their speculative positions in gold during the market-wide selloff earlier this month, holdings in ETFs still rose on recession concerns, Goldman’s analysts wrote, adding that physical demand from the Eastern markets also appeared to rise when gold prices dipped during the market turmoil.

Since then, bullion has recovered all its losses, and in recent days went on another rally to hit a new record of $3,245 per ounce. The yellow metal has now gone up by over 24% in 2025 — making it one of the best-performing assets of the year.

UBS upgrade

Also on Friday, Swiss bank UBS upgraded its 2025 gold forecast to $3,500 an oz., up from $3,200 previously.

“The case for adding gold allocations has become more compelling than ever in this environment of escalating tariff uncertainty, weaker growth, higher inflation and lingering geopolitical risks,” UBS strategist Joni Teves said in a note.

The changing global trade, economic and geopolitical landscape is reinforcing the role of gold as a safer investment haven, Teves added.