Samantha Dart, co-head of commodities research at Goldman Sachs, said the price of gold could reach $3,000 an ounce next year as central banks continue to buy the precious metal.
The price of gold is trading around $2,698 per ounce.
Dart confirmed that this increase will be primarily supported by central bank purchases, as central banks around the world have already expanded their purchases of gold five-fold compared to their average before 2022.
In the latest quarter, central bank purchases of gold more than doubled year-on-year to 186 tons, according to data from the World Gold Council.
Central bankers have bought 694 tons of gold since the beginning of the year, on par with last year’s levels, the group said in a report issued in October.
Speaking to Bloomberg, Dart added: “It has been the dominant driver of where gold has moved since 2022 and the moment that Russian financial assets were banned, that sparked a lot of concern on the part of a lot of emerging markets – and China in particular – who knows, it might happen.” “They have this one day, so central bank purchases have increased dramatically.”
