Eric Sepanek
SBC Founder
Eric Sepanek is the founder of Scottsdale Bullion & Coin, established in 2011. With extensive experience in the precious metals industry, he is dedicated to educating Americans on the wealth preservation power of gold and silver.
Société Générale (SocGen) says gold is on pace to breaktrough $3,300 an ounce in 2025 and even holds out the possibility of a $4,000 all-time high under the most bullish conditions. The French-based bank is reshuffling its investments toward the yellow metal and away from the US dollar as the world economic order is reorganized.
SocGen Raises Gold Price Target by 14%
In a recent report, SocGen announced a new gold price forecast of $3,300, nearly 14% higher than its previous prediction. Only a few months ago, the multinational bank saw the yellow metal climbing to $2,900 by the end of the year. Now, SocGen analysts expect prices to average $3,300 in the fourth quarter, which means gold could trade above this midpoint. This more optimistic outlook comes as several experts and financial institutions raise their benchmarks following gold’s crossing the $3,000 barrier.
Less USD, More Gold
In addition to launching a new gold price prediction, SocGen has publicized its Q2 holdings. The bank’s Multi-Asset Portfolio Strategy gives retail investors insight into how a multinational bank is approaching the tumultuous economic climate. The bank jettisoned the US dollar entirely, down from 5% in Q1.
The Euro and Yen have been the primary cash replacements, as analysts see these currencies benefiting from a weakening dollar. Gold is the main beneficiary of the bank’s shifting portfolio, as the yellow metal now accounts for 7% of the company’s holdings, representing the group’s largest commodity position.
The Decline of US Exceptionalism
SocGen analysts view the dollar’s vulnerability as a symptom of a much larger issue: the death of US exceptionalism. For decades, American economic hegemony supported geopolitical, diplomatic, and military advantages, just to name a few. Trump’s volatile reshaping of global alliances and trade relations destabilizes the Pax Americana as the US dollar is increasingly viewed as a liability rather than an asset, a major tailwind for gold prices.
“Gold remains a strong momentum play, in a context where the redefinition of geopolitics under the US administration triggers significant policy reactions,” SocGen explains,
“[T]he de-dollarization process is likely to continue, implying central banks worldwide will continue to buy gold unabated.”
This falls in line with Deutsche Bank’s recent warning that the US dollar is on track to lose its safe-haven status.
What would it take to get to $4,000?
The bank’s official gold price target remains $3,300, but analysts see a path to $4,000. “The gold price could get a further significant boost, probably toward $4,000/oz, if the Russian…frozen assets are seized to support Ukraine,” SocGen continued,
“This would…push non-Western aligned countries to accelerate central bank reserve de-dollarization to protect against any sanctions and seizure of bank accounts.”
In fact, gold’s recent surge is attributable in part to the initial sanctions against Russia following its invasion of Ukraine. The weaponization of USD fueled central bank buying, which has cleared 1,000 tons every year since 2022. This heightened consumption pushed gold prices from $2,000 to $3,000, making the next leg up to $4,000 seem more plausible. As economic and geopolitical tensions rise, more experts are raising their 2025 gold price predictions.