Canada Signals Delay in US Tariff Deal as Talks Shift to USMCA Review 
Japan Exports to U.S. Rebound in November as Tariff Impact Eases, Boosting BOJ Rate Hike Expectations 
Asian Stocks Edge Higher as Tech Recovers, U.S. Economic Uncertainty Caps Gains 
BoE Set to Cut Rates as UK Inflation Slows, but Further Easing Likely Limited 
Oil Prices Rebound as Trump Orders Blockade of Sanctioned Venezuelan Tankers 
Asian Currencies Slip as Dollar Strengthens; Indian Rupee Rebounds on Intervention Hopes 
Asian Stocks Slide as AI Spending Fears and Global Central Bank Decisions Weigh on Markets 
RBA Unlikely to Cut Interest Rates in 2026 as Inflation Pressures Persist, Says Westpac 
Gold and Silver Surge as Safe Haven Demand Rises on U.S. Economic Uncertainty 
Oil Prices Climb on Venezuela Blockade, Russia Sanctions Fears, and Supply Risks 
Yen Near Lows as Markets Await Bank of Japan Rate Decision, Euro Slips After ECB Signals Caution 
Asian Markets Rebound as Tech Rally Lifts Wall Street, Investors Brace for BOJ Rate Hike 
EU Delays Mercosur Free Trade Agreement Signing Amid Ukraine War Funding Talks 
New Zealand Business Confidence Hits 30-Year High as Economic Outlook Improves 
Oil Prices Steady in Asia but Headed for Weekly Loss on Supply Glut Concerns 
Asian Fund Managers Turn More Optimistic on Growth but Curb Equity Return Expectations: BofA Survey 
Trump Orders Blockade of Sanctioned Oil Tankers, Raising Venezuela Tensions and Oil Prices 
Goldman Sachs has revised its gold price forecast for early 2025, raising the target to $2,900 per troy ounce from the previous $2,700. The investment bank cited two key factors for the increase: the anticipated decline in short-term interest rates and ongoing robust purchases by emerging market central banks.
Decline in Interest Rates Expected to Boost Gold Market
Goldman Sachs expects a faster decline in short-term interest rates in Western countries and China, noting that the gold market has yet to fully account for these changes. The bank anticipates a gradual adjustment in Western ETF holdings backed by physical gold, which could bolster prices.
Emerging Market Central Banks Fueling Gold Demand
Purchases by emerging market central banks in the London over-the-counter (OTC) market are another driving factor. Goldman strategists believe these purchases will “remain structurally elevated,” supporting the rally that began in 2022.
Nowcasting Tool Highlights Strong Gold Purchases
According to Goldman’s nowcasting tool, which provides timely monthly data, central bank and institutional demand for gold in the London OTC market remains strong. As of July, purchases averaged an annualized 730 tons, making up roughly 15% of global annual production. China has significantly contributed to this demand, with estimates aligning closely with those of the World Gold Council (WGC). The tool’s advantages include monthly updates, country-specific transparency, and data-informed by customs and institutional knowledge.
Goldman Sachs Maintains Long-Term Positive Stance on Gold
Goldman Sachs has reiterated its long-term favorable outlook on gold, driven by the gradual boost expected from lower interest rates, sustained demand from central banks, and gold's role as a hedge against geopolitical, financial, and recessionary risks.
Market Response and Economic Outlook
Gold prices were just below their all-time high on Tuesday. U.S. Federal Reserve Chair Jerome Powell recently downplayed the likelihood of significant interest rate cuts in the near term, emphasizing that the Fed is not “in a hurry” to reduce rates. Investors are now awaiting labor market data for further economic insights.
