Goldman Sachs has issued a research report in which it significantly lowers its year-end gold price target to $4,900 per ounce.
The revision is primarily based on two key factors.
First, the firm has reduced its forecast for demand in interest rate-sensitive gold ETFs.
This adjustment follows the bank's recent decision to push back its projections for the final two Federal Reserve rate cuts to June and December 2027, from a prior expectation of December 2026 and March 2027.
Second, the initial Federal Reserve meeting under new Chair Wash delivered an unexpectedly hawkish stance.
This development is anticipated to temper market concerns over developed-market central bank independence in the coming quarters.
Consequently, Goldman now assumes that demand for gold as a macro policy hedge will remain stable at current levels, whereas it had previously anticipated a gradual recovery to early January 2026 levels.
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