Investment banks and financial services companies such as Goldman Sachs, BNP Paribas, Macquaire, ING, UBS, and Citigroup have raised their price outlook for gold as the precious metal topped $3,000 an ounce over the weekend.
Gold briefly touched $3,000 on Friday evening before dipping, and then hit the $3,000 mark again at 1640 hours IST (1110 hours GMT). The yellow metal has been the best-performing commodity this year, with a gain of over 14 per cent since the beginning of the year. Last year, gold was also one of the best performers, increasing by over 30 per cent.
Ewa Manthey, a commodities strategist at ING Think, noted that gold has hit a series of consecutive record highs driven by trade frictions, central bank buying, and inflows into exchange-trade fund (ETF) holdings.
John Reade, Senior Market Strategist at the World Gold Council, called gold hitting $3,000 a significant milestone that reinforces the metal’s haven role during times of uncertainty. He highlighted its performance from $1,000 during the financial crisis to $2,000 amid the pandemic, demonstrating its ability to perform well in risk-off environments.
Reade also mentioned that since 2012, gold has broken its tight relationship with US interest rates and the dollar, attributing this change to increased central bank purchases and investment demand from emerging markets.
Macquarie Bank in Australia has raised its gold price outlook, expecting the metal to peak at a quarterly average of $3,150 per ounce in the third quarter of 2025, with a single-point high of $3,500. This aligns closely with the inflation-adjusted record from January 1980.
Other multinational banks such as BNP Paribas, Goldman Sachs, and UBS have also raised their price targets for gold, citing ongoing macroeconomic uncertainties and geopolitical factors driving demand. Central bank buying and increased portfolio diversification among institutional investors seeking protection against market volatility have also contributed to the bullish outlook for gold.
Overall, the outlook for gold remains positive, with investment banks and financial services firms continuing to raise their price forecasts for the precious metal.
