Gold price ‘could surge to a record $3,000 an ounce’ under Trump

The price of gold could surge to a record $3,000 an ounce by December next year, driven by central bank demand and cuts in US interest rates, according to Goldman Sachs.
The Wall Street investment bank has included the precious metal among its top commodity trades for 2025 and says that prices could climb further during Donald Trump’s presidency. “Go for gold,” Goldman analysts, led by Daan Struyven, wrote in a note.
Goldman said that structural factors, such as increased buying from central banks, would push prices higher when combined with cyclical drivers such as inflows to exchange-traded funds (ETFs) amid Federal Reserve rate cuts.
Gold is trading at about $2,584 an ounce and has had a robust rally this year, peaking above $2,790 last month. Its recent pullback followed Trump’s election victory, which strengthened the US dollar. A strong dollar typically weighs on gold prices as it makes the metal more expensive for foreign buyers.
The analysts noted that an unprecedented escalation of trade tensions could revive speculative positioning in gold.
They also pointed to a Trump administration’s potential influence on bullion. Policies that heighten geopolitical risks or amplify inflation concerns could indirectly support gold prices in the longer term.
Michael Langford, chief investment officer at Scorpion Minerals, echoed this: “President Trump’s inauguration is likely to see an ongoing strengthening of the US dollar, which is negative for gold in the short term. However, his policies are likely to be significantly inflationary in the long term, benefiting gold.”
The price of gold rebounded 1.2 per cent on Monday to $2,591.43 per ounce, recovering from a six-session losing streak. Analysts attributed the bounce to a pause in the dollar’s rally.
“As the year ends, we will see volatility in gold prices,” Ross Norman, an independent analyst, said. “There’ll be some books clearing and profit-taking, regardless of what the Fed does in December.”
Goldman’s bullish outlook for gold extends to other commodities. Brent crude is projected to trade between $70 and $85 a barrel in 2025, with upside risks tied to US sanctions on Iran. Base metals remain favoured and European gas faces near-term supply risks. For agricultural commodities, Goldman warned of fallout from potential US-China trade disputes under Trump.
“Higher China tariffs on US agricultural goods could reduce demand for US exports,” analysts said, adding that lower US soybean and corn prices may be required to rebalance the market.