(Kitco News) - After a significantly disappointing week, the gold market appears to be stabilizing above $2,600 an ounce, and many banks are not ready to give up on the precious metal just yet.

On Monday, commodity analysts at Goldman Sachs reiterated their stance that gold prices will hit $3,000 an ounce by the end of 2025.

While Donald Trump’s election victory and a Republican Party sweep through Congress triggered some selling and profit-taking in the gold market, the investment bank noted that the factors driving gold to record highs have not disappeared.

"The structural driver of the forecast is higher demand from central banks, while a cyclical lift would come from flows to exchange-traded funds as the Federal Reserve cuts," the analysts said in a note.

Although central bank gold purchases slowed in the third quarter, analysts expect demand to remain consistent for the foreseeable future as nations continue to diversify their official reserves away from the U.S. dollar.

Goldman Sachs also noted that the U.S. government’s growing debt could prompt more central banks to increase their gold holdings.

Trump’s election win has pushed bond yields and the U.S. dollar higher, creating significant headwinds for gold. Traders and investors are focused on the President-elect’s proposed “America-First” policies, but Goldman Sachs said these policies could also support gold prices through 2025.

"An unprecedented escalation of trade tensions could revive speculative positioning in gold," the analysts said.