Louis Goss of MarketWatch reports that Goldman Sachs analysts expect uncertainty related to heightened geopolitical tensions and the potential for tariffs from the U.S. to further increase the attractiveness of gold as a safe haven. Goss writes:
Gold prices could hit $3,000 an ounce by the end of 2025, even if the value of the U.S. dollar continues to rise, Goldman Sachs has said.
Increases in the value of America’s currency have typically driven down gold prices in reducing demand for the metal as a safe haven asset.
But Goldman Sachs’ analysts say investors could now see increases in both gold prices and the value of the U.S. dollar in 2025, due to interest rate cuts and heightened uncertainty. […]
Uncertainty related to heightened geopolitical tensions and the potential for tariffs from the U.S. could further increase the attractiveness of gold as a safe haven, the analysts said.
“Geopolitical shocks, including tariffs, typically boost both gold and the dollar,” Goldman Sachs’ analysts said.
Investors are broadly expecting more positive data on the state of America’s economy and Trump’s tariffs will boost the value of the U.S. dollar in 2025.
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