Goldman Sachs Lowers Gold Forecast to $4,900/Oz After Fed Hawkish Shift
GS•Goldman Sachs analysts cut December gold forecast to $4,900 an ounce from $5,400, citing a hawkish Federal Reserve and weaker ETF demand. Spot gold slid 0.94% to $4,216.85 an ounce as the dollar strengthened and a US-Iran truce tempered inflation pressures but left rate risks elevated.
1. Forecast Revision
Goldman Sachs analysts have trimmed their year-end forecast for gold prices to $4,900 an ounce, down from the prior $5,400 projection. The cut reflects expectations that a firmer dollar and reduced gold ETF inflows will outweigh any inflation relief from a preliminary US-Iran truce.
2. Market Reaction
Spot gold prices fell 0.94% to $4,216.85 an ounce as traders weighed the forecast cut against a stronger dollar, which rose 0.3%. Silver, platinum and palladium also saw declines of up to 3% as rate-sensitive precious metals came under pressure.
3. Federal Reserve Influence
Federal Reserve officials signaled a hawkish stance on interest rates after leaving borrowing costs unchanged, with growing support for further hikes. Elevated rates increase the opportunity cost of holding non-yielding assets like gold, reinforcing near-term downside risks.
