Goldman Sachs Lowers Gold Price Target, Expects No Rate Cut by the Fed This Year

BlockBeats News, June 19th, due to no longer expecting a Fed rate cut in 2026, Goldman Sachs has lowered its year-end gold price forecast by $500 per ounce.

Analysts Lina Thomas and Daan Struyven stated in a report: "We have revised down our December gold target price to $4,900 per ounce, meaning that the price of gold is still expected to rise in the second half of the year, but the increase is not as high as previously expected. Our view on the gold price remains constructive structurally but cautious tactically, with near-term downside risks and medium-term upside risks."

The analysts stated that the outlook revision is due to Goldman Sachs economists postponing the U.S. rate cut expectations to June and December next year, previously expected in December 2026 and March 2027, as well as a reduced forecast for gold ETF fund inflows. Additionally, they added that concerns over central bank independence may be limited given the "surprisingly hawkish" stance at the first Fed meeting under Powell's leadership. (FXStreet)