Gold's Uptrend Unshaken by Fed Rate Hike, Goldman Projects $5,400 per Ounce by End of 2027

Stock News09-18 15:45

The Federal Reserve delivered a 25-basis-point rate increase this week while signaling the potential for additional tightening in the coming months. Despite this, Goldman Sachs maintains that the pace of monetary policy tightening may decelerate, yet it will not disrupt the ongoing rally in gold prices, reaffirming its projection of $5,400 per ounce by the end of 2027.

In their latest analysis, Goldman strategists noted that the impact of tighter monetary policy is expected to primarily temper the near-term speed of gold's ascent rather than lower the ultimate price objective. The ongoing diversification of reserve assets by global central banks continues to serve as the principal structural driver underpinning the bank's bullish long-term outlook for gold.

However, Goldman cautioned that if the Fed adopts a more hawkish stance, it could trigger a deeper corrective pullback in gold. The firm anticipates that gold might first retreat to a short-term floor near $4,070 per ounce before gradually recovering, ultimately climbing toward $4,200 per ounce by the close of this year.

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