Goldman Sachs expects gold prices to reach $3,700 per ounce by the end of 2025 and rise to $4,000 by mid-2026. This forecast is based on the ongoing demand for gold from global central banks, investor concerns about an economic downturn, and a flight to safety regarding U.S. assets.

Daan Struyven, Co-Head of Global Commodity Research at Goldman Sachs, pointed out that risk-return analysis favors gold. Both Bitcoin and gold have surged significantly in the past three years, but Bitcoin is more volatile, more sensitive to drawdowns, and has a higher positive correlation with tech stocks. Therefore, if one wants to hedge against stock downside risk, the relatively low correlation and lower volatility suggest a significantly positive allocation to gold.