Goldman Sachs trims gold forecasts as Fed stays hawkish
Goldman Sachs on Thursday lowered its end-2026 gold price forecast to $4 150/oz from $4 650/oz and its end-of-2027 forecast to $4 800/oz from $5 400/oz, citing implications of the US Federal Reserve's more hawkish policy stance in recent months.
Potentially higher oil prices could add to pressure through systematic selling, while sharp equity drawdowns could initially pull gold lower as margin calls and broader deleveraging force investors to raise cash, the bank said.
However, structural central bank demand remains supportive, while private wealth and other long-term investors may value gold as insurance against fiscal sustainability risks, it added.
Spot gold rose to a more than two-week high on Thursday as the US dollar and Treasury yields weakened after lower oil prices eased inflation concerns.