The gold prices could reach up to $ 4,500 per ounce by the end of 2025 in an extreme risk sase, the foreign investment bank Goldman Sachs said, referring to an escalating trade war in the US and China and the fear of a recession.
Goldman Sachs, however, increased the golden price objective to $ 3,700 per ounce by the end of2025, the third such walk this year, according to reports. Earlier in March, the Investment Bank had raised its gold price objective 2025 to $ 3,300 per ounce.
Increased concern about the American economy, fueled by an escalation in the trade war in the US-China, have increased the appeal of gold as a recession hedge, according to an investment bank, according to reports.
Golden prices crossed the $ 3,200 per ounce for the first time last week and reached a record high of $ 3,245.69 per ounce, because rising geopolitical and economic uncertainty is horrified global markets. The demand for yellow metal remained robust about both physical purchases and listed funds (ETFs).
Goldman Sachs stated that it was positioned to cover itself against the growing risk of an American recession due to gold, referring to an increased investor’s interest in both physical bullion and ETFs in recent weeks.
The increase in demand and prices is amid in intensifying trade tensions between the US and China. The US increased rates for Chinese import to a cumulative 145%, resulting in retribution rates from Beijing to 125% on American goods.
Moreover, US President Donald Trump announced plans to impose steep “reciprocal” rates on important American trading partners. Although the implementation has been delayed by 90 days, a universal rate of 10% has already been enforced. The administration also indicated at the upcoming targeted rates for electronics and medicines.
Several large worldwide central banks, especially in Asia, have performed their gold purchases in recent months. This trend reflects the growing concern about a possible American recession, especially in the midst of increased economic uncertainty under the Trump government.
Golden prize today
Gold prices fell on Monday when US President Donald Trump illuminated trade tensions by providing tariff exemptions on smartphones, computers and other electronics that were mainly imported from China.
Spot gold fell by 0.4% at $ 3,223.67 per ounce. Bullion reached a record high of $ 3,245.28 in the previous session, Reuters reported. US Gold Futures illuminated 0.1% to $ 3,240.90.
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