Why Are HSBC and Goldman Sachs So Bullish on Gold Prices?
Gold Shines Bright as Banks Bet Big on Safe-Haven Demand

Gold is glittering brighter than ever, and the big banks are taking notice. HSBC has upped its gold price forecasts for 2025 and 2026, citing a cocktail of geopolitical turmoil and insatiable investor appetite for the shiny metal, as first reported by Reuters (1). Meanwhile, Goldman Sachs is doubling down with an even bolder prediction, seeing gold soaring to new heights. With spot gold already flirting with record highs at $3,341.79 per ounce as of July 2, 2025, here’s why the yellow metal is poised to shine—and what it means for investors.
HSBC’s latest outlook paints a rosy picture for gold, projecting an average price of $3,215 per ounce in 2025, up from a previous estimate of $3,015, and $3,125 per ounce in 2026, a bump from $2,915 (1). The bank’s analysts, in a note dated July 1, 2025, expect gold to trade in a volatile range of $3,100 to $3,600 for the rest of this year, with year-end prices hitting $3,175 in 2025 and $3,025 in 2026. What’s fueling this optimism? A perfect storm of global uncertainty—think U.S. political wrangling over a $3.3 trillion tax cut and spending bill, Treasury Secretary warnings of looming tariffs, and broader geopolitical risks that make gold the ultimate safe-haven play. Even at these lofty levels, HSBC sees gold as a portfolio diversifier, a hedge against the chaos of rising government debt and international tensions.
