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Goldman Sachs Forecasts Gold Rally to $3,700 by Year-End—Here’s Why

Goldman Sachs Forecasts Gold Rally to $3,700 by Year-End—Here’s Why

Published:
2025-05-07 08:30:00
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Goldman Sachs just dropped a bombshell prediction: gold could surge to $3,700 by December. The bank cites a perfect storm of inflation hedging, central bank buying, and geopolitical tension as catalysts.

Subheader: The Macro Tailwinds

With real yields collapsing and the dollar showing cracks, gold’s traditional drivers are flashing green. Add in relentless institutional demand, and the setup looks explosive.

Subheader: The Crypto Angle

Interestingly, Goldman’s analysis coincides with Bitcoin’s recent slump—proving once again that in times of uncertainty, old-school shiny metal still gets the nod over digital gold from the Wall Street suits.

Closing Thought: Whether this prediction ages like fine wine or sour milk, one thing’s certain—the smart money’s betting big on hard assets in 2025.

Gold Price Prediction, Trade Shifts And Market Volatility Risks

gold with charts

Source: Watcher Guru

Goldman Sachs has recently doubled down on its bullish gold price prediction, and they’re now expecting gold to climb all the way to $3,700 per ounce by December and potentially even reach $4,000 by mid-2026. This Goldman Sachs forecast comes at a time when many investors are increasingly concerned about economic stability.

The investment bank’s analysts stated:

Currently, the gold price prediction appears somewhat tempered by Optimism around the upcoming US-China trade talks, which has temporarily put some pressure on gold as a safe haven commodity. The precious metal has been trading near the $3,360 area while traders and also institutional investors anxiously await the Federal Reserve’s policy decision.

breakout through the $3,360-3,365 horizontal barrier

Source: TradingView

Geopolitical Tensions Support Safe Haven Assets

The ongoing market volatility linked to global conflicts continues to provide strong support for the gold price prediction despite day-to-day fluctuations. Persistent geopolitical risks from several fronts, such as the Russia-Ukraine conflict, Middle East tensions, and military escalations along the India-Pakistan border are all contributing to gold’s appeal right now.

A Kremlin spokesman officially announced:

The US-China trade war developments are also closely being watched by gold investors. US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer are preparing for crucial meetings with Chinese officials in Switzerland this week, marking the first direct discussions since the implementation of recent tariffs.

Technical Outlook Aligns With Bullish Projections

From a technical analysis perspective, gold’s recent breakout above the $3,360-3,365 horizontal barrier adds credibility to the positive gold price forecast from major financial institutions such as Goldman Sachs. Analysts interpret the move beyond $3,400 as a fresh trigger for bulls, while technical indicators remain firmly in positive territory.

Analysts now consider the $3,430-3,435 area a pivotal zone for the gold price forecast. A definitive break above this level could potentially propel prices toward challenging all-time highs and possibly reaching the $3,500 psychological mark, lending support to Goldman’s ambitious goldman sachs prediction.

Analysts expect support for gold NEAR the $3,365-3,360 area, with traders anticipating additional backing around $3,328-3,327 ahead of the important $3,300 round figure. Investors and market participants remain somewhat cautious ahead of the Fed’s upcoming decision, which will provide important clarity on future interest rate cuts and influence the market volatility outlook.

The gold price prediction from Goldman Sachs arrives at a time when an increasing number of investors are actively seeking protection against economic uncertainty and market volatility. With multiple factors, such as trade tensions and geopolitical risks, supporting gold’s upward trajectory, the precious metal’s appeal as a SAFE haven asset remains particularly strong in the current environment.

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