Goldman Sachs Cuts Gold Forecasts as Fed Takes Hawkish Stance

Investment banking giant Goldman Sachs has significantly lowered its gold price forecasts, citing an increasingly hawkish stance from the U.S. Federal Reserve.

• End-2026 target: $4,150 per ounce, down from $4,650.
• End-2027 target: $4,800 per ounce, down from $5,400.

The revision comes as markets push back expectations for Federal Reserve rate cuts, with reductions now anticipated no sooner than March 2027 and December 2027. Goldman analysts Lina Thomas and Daan Struyven said a “higher for longer” interest rate environment makes non-yielding assets like gold less attractive, while a stronger U.S. dollar adds further downward pressure.

In a notable twist, spot gold rallied 1.9% to $4,134.83 per ounce on the same day Goldman cut its forecast. The increase was supported by a weakening dollar and a drop in 10-year Treasury yields.

Goldman noted that structural central bank demand continues to provide a long-term floor for prices. The bank’s commodity analysts remain “structurally constructive but tactically cautious” on gold.

Source: TradingView / Reuters – Goldman Sachs lowers gold price forecasts on hawkish Fed outlook