Goldman Sachs has increased its year-end price target for gold to $3,700 an ounce, reflecting ongoing global economic uncertainty.

In a note released late Friday, the bank updated its 2025 forecast following gold’s notable recovery from the recent market selloff triggered by tariff announcements on April 2. These tariffs had caused gold prices to drop up to 5% as investors sought to cover losses in other asset classes.

This marks the third increase in Goldman’s gold forecast this year, and it’s the most significant adjustment, showing a 12% rise.

The first adjustment occurred in February when Goldman shifted its stance on gold’s potential to reach $3,000 per ounce, raising its year-end target to $3,100. The second increase happened in late March, lifting the target to $3,300. In both instances, analysts attributed the changes to robust demand from central banks and interest in gold-backed ETFs.

Even as investors reduced their speculative positions during the selloff, ETF holdings increased amidst recession fears. Analysts noted that physical demand from Eastern markets also spiked when gold prices fell during the market turbulence.

Since that market plunge, bullion has fully recovered its losses. Recently, it achieved a new high of $3,245 per ounce. So far in 2025, gold has risen over 24%, making it one of the top-performing assets this year.

UBS Increases Gold Price Forecast

On the same day, Swiss bank UBS raised its 2025 gold forecast to $3,500 an ounce, up from its previous estimate of $3,200.

“The case for adding gold allocations has become more compelling than ever in this environment of escalating tariff uncertainty, weaker growth, higher inflation, and lingering geopolitical risks,” noted UBS strategist Joni Teves.

Teves emphasized that the changing global trade landscape and geopolitical climate reinforce gold’s status as a reliable investment haven.