Gold prices are rising near the $3,000 per troy ounce level, yet Wall Street has mixed views on where they will end up this year.

Goldman Sachs raised its forecast to $3,100/oz from $2,890 on central bank buying and inflows into exchange-traded funds (ETFs) in a note Monday; Morgan Stanley, meanwhile projects gold at $2,700 by the fourth quarter.

Goldman said that if "policy uncertainty—including tariff fears—stays high, higher speculative positioning for longer could push gold prices as high as $3,300/toz by year-end."

Gold has enjoyed a yearlong rally driven by rising central bank purchases, geopolitical tension, and declining interest rates.

The uncertainty around tariffs that U.S. President Donald Trump is planning to impose globally has been driving gold lately, Morgan Stanley analysts said in their note Friday. Gold is a safe haven investment and seen as a hedge as economists expect tariffs to ignite inflation.

Morgan Stanley Says 'Demand Destruction,' Recycling to Lower Gold Prices

The Morgan Stanley analysts cited "demand destruction and supply response" for their more downbeat view on gold, noting that demand could decline as prices continue to climb, while recycling boosts supply.

“Tariff uncertainty could take prices a bit higher, in our view, but further demand destruction and supply response from recycling and potential profit taking suggests prices could end 2025 lower than they are today,” the analysts wrote. 

The Morgan Stanley analysts said that both central bank and investment demand continue to be strong, especially in the world’s two largest gold markets of India and China.