Goldman Cuts Year-End Gold Forecast, GS Lowers China Q2 Growth Outlook
GS•Goldman Sachs reduced its year-end gold forecast by $500 to $4,900 an ounce, prompting Deutsche Bank to cut its Q3 target 22% to $4,300 and Q4 to $4,800. GS economists trimmed China Q2 growth outlook from 4.7% to 4.5% after fiscal deficit narrowed 4.1% to 3.16 trillion yuan.
1. Goldman Sachs Cuts Gold Forecast
Goldman Sachs reduced its year-end gold price projection by $500, lowering its target to $4,900 an ounce. The adjustment reflects expectations that the Federal Reserve will maintain current policy settings through year-end, damping bullion’s appeal as an inflation hedge.
2. Deutsche Bank Follows with Further Cuts
Following Goldman Sachs, Deutsche Bank trimmed its third-quarter gold forecast by 22% to $4,300 and cut its fourth-quarter target 17% to $4,800. The bank noted weak ETF demand and potential upside cap if the Fed enacts additional rate hikes.
3. GS Revises China Growth Outlook
Goldman Sachs economists cut their China GDP growth forecast for Q2 from 4.7% to 4.5% after official data showed the combined fiscal deficit fell 4.1% to 3.16 trillion yuan. They warned that tighter fiscal policy and subdued domestic demand could constrain near-term expansion.
