Earlier today, Goldman's commodities team reiterated its strategic bullishness on gold, by raising its early 2025 price target from $2,700 (where it already is) to $2,900 for two reasons: first, the bank's economists now look for faster declines in short-term interest rates in the West and China (the bank recently showed that the gold market doesn’t fully price in the rates boost to Western ETF holdings backed by physical gold yet), and second, Goldman's new nowcast shows that EM central bank purchases on the London over-the-counter (OTC) market continue to fundamentally drive the rally since 2022, and these structural purchases will remain elevated.
Echoing what it said last week, the bank's commodity analyst was nearly euphoric on the precious metal due to the following arguments:
