Goldman Sachs, a major Wall Street investment bank, has strongly recommended gold investments, predicting prices could climb to $3,000 per ounce next year. Gold is widely regarded as the most preferred and reliable safe-haven asset globally.

According to Bloomberg, on November 18, Goldman Sachs projected that factors such as global interest rate cuts and increased gold purchases by central banks would drive the price surge. The bank also named gold the top commodity for trading in 2025 and speculated that prices could rise further during a second term of Donald Trump’s presidency.

Goldman analysts set a target price of $3,000 per ounce by December next year in a note to investors. Gold prices have already shown a strong rally this year, breaking records repeatedly.

Economic news outlet CNBC highlighted that gold is viewed by many investors as a "non-confiscatable" long-term hedge against geopolitical uncertainties.

The rising popularity of gold has also attracted Korean-American and individual investors. While many typically invest through gold funds managed by financial advisors, there’s an increasing trend of directly purchasing gold.

The Korean jewelry industry reports a significant rise in gold purchases for investment purposes, such as gold bars and ornaments, over personal use. Additionally, major warehouse retailers like Costco have seen a surge in gold sales, leading to product shortages.

Mainstream media report that younger Americans are increasingly favoring gold over diamonds, as diamonds tend to depreciate immediately after purchase, whereas gold retains its value. More practical-minded young couples are even choosing gold for wedding rings.

As a non-yielding asset, gold tends to gain appeal during periods of falling interest rates and is sensitive to the value of the U.S. dollar. With the Federal Reserve pivoting toward rate cuts and potential inflation increases under a second Trump administration, analysts predict a weaker dollar and rising gold prices.

The sustained rise in gold prices has been supported by increased public sector buying and the Fed’s shift to a more accommodative monetary policy.

Goldman Sachs analysts noted that under a Trump administration, heightened trade tensions could drive speculative interest in gold. Concerns about U.S. fiscal sustainability and the possibility of central banks—especially those holding large amounts of U.S. Treasury securities—buying more gold could further support price increases.

Gold prices, which stood at $2,071 per ounce at the end of last year, reached a record high of $2,800 on October 30 this year, marking a 35% surge year-to-date.



<Hwandong Cho>