Goldman Sachs expects gold prices to hit US$2,910 by the year-end

Goldman Sachs lowered its year-end target of gold prices to US$2,910 (HK$22,698) per ounce this year, as it expected a slower-than-expected monetary easing by the US Federal Reserve.

The US investment bank, which projected US$3,000 per ounce of gold at the end of 2024, also postponed the target to mid-2026.

This year, the slower pace of monetary easing in 2025 is expected to dampen demand for gold exchange-traded funds, Goldman Sachs analysts wrote in a note.

Weaker-than-expected ETF flows in December 2024, driven by uncertainty over post-election policy easing in the US, also contributed to a lower starting point for gold prices at the start of the new year.

Goldman Sachs economists now expect the Fed to cut interest rates by 75 basis points this year, which is lower than the previously expected 100 basis points.

(Staff reporter)