tl;dr
Seven Wall Street giants, including JPMorgan Chase and Bank of America, predict a rally for gold in the year ahead. They foresee new all-time highs for gold by 2025, driven by expected interest rate cuts from the Federal Reserve, increased central bank accumulation globally, and retail investors' in...
Seven Wall Street giants, including JPMorgan Chase and Bank of America, predict gold to rally to new all-time highs by 2025, driven by interest rate cuts and central bank accumulation.
Goldman Sachs anticipates a 33% gold price jump due to increased ETF investment and the Fed's rate-cutting cycle, with the remaining 67% attributed to continued central bank purchases.
Various financial institutions project gold to potentially surge to $2,850-$3,000 by the end of 2022 and reach as high as $3,000 by 2025, while UBS offers a more conservative estimate of a 2025 top at $2,700.
Seven Wall Street giants, including JPMorgan Chase and Bank of America, predict a rally for gold in the year ahead. They foresee new all-time highs for gold by 2025, driven by expected interest rate cuts from the Federal Reserve, increased central bank accumulation globally, and retail investors' interest in gold exchange-traded funds. Goldman Sachs anticipates a price jump, with 33% attributed to investor exposure through ETFs and the Fed's rate cuts, and the remaining 67% from continued central bank purchases. Price targets by 2025 range from $2,600 to as high as $3,000, with various financial institutions offering their projections. However, UBS is more conservative, expecting a 2025 peak at $2,700. As of now, gold is trading at $2,666.50 per ounce.
Seven Wall Street giants including JPMorgan Chase and Bank of America believe one asset is primed to rally in the year ahead. The big banks collectively see gold moving to new all-time highs through 2025 amid expectations of more interest rate cuts from the Federal Reserve and more central bank accumulation around the globe, reports Reuters. The firms also say rallies for the precious metal will be buoyed by retail investors piling into gold exchange-traded funds (ETFs). Say JPMorgan analysts in an investor note, “Strong physical demand from China and central banks supported gold prices over the past two years, but investor flow, and retail-focused ETF builds in particular, continue to hold the key to a further sustained rally over the upcoming Fed cutting cycle.”
Meanwhile, investment banking giant Goldman Sachs expects more investors will turn to gold in the coming months to shield their capital against potential macroeconomic headwinds. Goldman analysts say an increase in investors getting gold exposure through ETFs along with the Fed’s rate-cutting cycle could account for 33% of the precious metal’s expected price jump. The remaining 67% of the projected price rally could come from central banks continuing to buy the precious metal. “We reiterate our long gold recommendation due to the gradual boost from lower global interest rates, structurally higher central bank demand and gold’s hedging benefits against geopolitical, financial and recessionary risks.” Goldman expects gold to climb to $2,900 early next year with a price target of $2,973 by the end of 2025.
Other Wall Street giants say it is within the realm of possibility for gold to surge to as high as $3,000 next year. JPMorgan analysts believe gold may rally to as high as $2,850 by the end of next year. In a base-case scenario, Citi says gold may end 2025 within the $2,800 to $3,000 price range. BofA says it is possible for gold to reach $3,000 next year. Macquarie says gold could hit $2,600 in the first quarter of next year and possibly rally to $3,000 later in 2025. However, others are not as optimistic about gold’s 2025 potential. UBS expects gold to hit a 2025 top at $2,700. At time of writing, gold is trading for $2,666.50 per ounce.