Goldman Sachs and UBS have restated their predictions for gold prices by the end of 2025. Goldman Sachs expects an ounce of gold to reach $3,000, while UBS has a slightly lower target of $2,900.

The investment banks believe that the current uncertainty in U.S. politics and recent market consolidation create favorable conditions for investing in gold. Goldman Sachs highlights the demand from central banks and potential support from Federal Reserve rate cuts as key factors driving their positive outlook. They also note that long positions in gold and oil can act as effective hedges against inflation and geopolitical risks, particularly in scenarios involving tariff increases, oil supply disruptions, and concerns over national debt.

UBS advises investors to consider buying gold during price declines and recommends a 5% allocation to gold within a balanced dollar portfolio.