Goldman Sachs analysts, led by Daan Struyven, have a positive outlook on gold, predicting that prices could reach $3,000 an ounce by December 2025.

This optimistic forecast is based on increased demand from central banks and expected inflows into exchange-traded funds, as the Federal Reserve is anticipated to implement interest rate cuts in 2025.

The recent surge in gold prices has been notable, with the commodity hitting record highs before experiencing a temporary decline after Donald Trump's election victory, which strengthened the dollar.

Analysts highlight that the ongoing purchases by official sectors and a shift towards looser monetary policy by the Fed are important factors driving the rise in gold prices.

Furthermore, escalating trade tensions and concerns about U.S. fiscal sustainability may further support gold prices, particularly as central banks, especially those with significant U.S. Treasury holdings, may increase their acquisitions of the precious metal.