Leading global investment bank Goldman Sachs forecasts that gold prices will climb to $3,100 per ounce by the end of 2025.

This will come as a good omen for Ghana as the State will rope in more export revenue.

The increased forecast is underpinned by a higher-than-expected demand for gold from central banks.

Its previous projection was for gold to rise to $2,890. Presently, the precious metal is going for $2857.83.

The price of gold has surged more than 40% since the start of 2024, repeatedly shattering records

Goldman Sachs said central banks have been increasing their reserves of the commodity since the freezing of Russian central bank assets in 2022. This follows Russia's invasion of Ukraine.

Before then, the average monthly institutional demand on the London over-the-counter gold market stood at 17 tonnes. In December last year, that figure hit 108 tonnes.

In addition to the higher central bank demand, Goldman Sachs Research anticipates an extra boost to the gold price coming from increased purchases of gold ETFs as declining interest rates make gold a more attractive investment.

“Those factors may be somewhat offset by speculators reducing their net long positions on gold in futures markets, which is projected by Goldman Sachs Research to weigh on the gold price somewhat. Speculators' net long positions are high because of the demand for gold as a safe haven asset — a phenomenon that could be short-lived if markets become more confident about the economic and political environment”, analyst Lina Thomas said.

“That said, “if policy uncertainty — including tariff fears — stays high, higher speculative positioning for longer could push gold prices as high as $3,300 per troy ounce by year-end,” Lina Thomas added.