Goldman Sachs cuts gold price forecasts
U.S. investment bank Goldman Sachs has lowered its year-end gold price forecasts for 2026 and 2027, citing the Federal Reserve's (Fed) tight monetary policy stance.
The bank reduced its year-end 2026 gold price forecast from $4,650 to $4,150 per ounce and lowered its year-end 2027 projection from $5,400 to $4,800. These revisions represent cuts of $500 and $600, respectively. Goldman Sachs warned that a more hawkish Fed policy could increase downward pressure on gold prices.
The bank also cautioned that gold could experience short-term losses if oil prices rise and equity markets face sharp sell-offs. It highlighted the risk that leveraged investors may be forced to sell gold to meet margin calls. However, Goldman Sachs emphasized that strong gold purchases by central banks would continue to support prices over the long term. The bank also noted that investors may continue to view gold as a safe-haven asset against fiscal sustainability risks.
Comments