Shiny Prospects Ahead: Big Banks Predict Gold’s Rally Will Continue in 2025

Gold Soars Amid Expectations of Continued Rally

Gold is up by more than 31% in 2024 and has delivered more than an 82% gain over the past five years. Nonetheless, many big banks believe that gold is set to continue its rally in 2025 and beyond.

This Is Good News for Long-Term Gold Investors

This development is good news for long-term gold investors. But to understand what’s motivating financial institutions to maintain this stance, let’s dive into what banks believe gold can do in following years.

What Goldman Sachs Thinks about Gold

Research from Goldman Sachs suggests that gold will climb higher as central banks in emerging markets continue to buy more gold. Goldman Sachs research analyst Lina Thomas mentioned lower interest rates as a catalyst for a 2025 gold rally. Thomas predicts that gold will reach $3,000 per troy ounce by the end of 2025. That price target represents a 17% improvement from current levels. Goldman Sachs recently reiterated its price target for gold, leaving little doubt on the bank’s current position.

What Bank of America Thinks about Gold

Goldman Sachs isn’t the only big bank that believes gold will exceed $3,000 per troy ounce by the end of 2025. Bank of America commodity strategist Francisco Blanch also contends that the precious metal can reach that price point next year.

What Citibank Thinks about Gold

Citibank has three-, six- and 12-month forecasts that should make gold investors feel good about holding their precious metals. Citi Research raised its three-month forecast from $2,700 to $2,800. The financial institution also has a forecast of $3,000 per troy ounce for the next six to 12 months.

What Wells Fargo Thinks about Gold

Wells Fargo doesn’t believe gold will reach $3,000 per troy ounce at the end of the year. However, the bank’s $2,900 price target still implies 13% upside from current levels.

What High Price Targets Mean for Gold Investors

These price targets from large financial institutions suggest that gold prices will rally by more than 10% in 2025. Buying at current prices can help you lock in solid gains if the price of gold moves as analysts anticipate.

Can You Trust the Analysts?

Most big banks seem to agree that gold is destined to reach $3,000 by the end of 2025. While some institutions like Wells Fargo have price targets just below $3,000, many banks tend to raise their price targets as an asset gains more demand.

More from Money:

Best Gold IRA Companies

Best Online Gold Dealers

Beginner’s Guide to Investing in Precious Metals

Source link