In December, central banks around the world bought 108 tons of gold, shocking Goldman Sachs into quickly raising its gold price expectations
Goldman Sachs has raised its forecast for the gold price at the end of 2025 from $2,890 per ounce to $3,100 per ounce, mainly due to increased demand from central banks and global economic uncertainty. In December 2024, central bank demand reached 108 tons, significantly higher than the average of 17 tons in 2022, with China being the largest buyer, increasing purchases by 45 tons. Goldman Sachs has adjusted its monthly demand assumption from 41 tons to 50 tons, expecting gold prices to hit $3,000 in 2026
Goldman Sachs announced in its latest report that it has raised its gold price forecast for the end of 2025 from the previous $2,890 per ounce to $3,100 per ounce. This adjustment is primarily based on the structural growth in central bank demand and expectations of global economic uncertainty. The report noted that demand for gold from central banks and other institutions reached 108 tons in December 2024, far exceeding the average level of 17 tons before 2022. Among them, China was the largest buyer, increasing its purchases by 45 tons. Therefore, Goldman Sachs has raised its monthly demand assumption for central banks from 41 tons to 50 tons.
Previously, Goldman Sachs believed that gold prices faced short-term correction pressure, but would hit $3,000 in 2026.
It seems that the purchasing power of global central banks has exceeded Goldman Sachs' expectations.
