Goldman Sachs Sees Gold Reaching $5,400/Ounce on Fed Cuts, Central Bank Buying
Goldman Sachs forecasts gold prices to rebound to $5,400 an ounce by year-end after a 17% pullback, citing expectations of two Fed rate cuts and 60 tonnes per month of central bank purchases. Analysts warn of tactical downside to $3,800 if the energy supply shock worsens.
1. Bullish Gold Forecast
Goldman Sachs maintained a bullish outlook on bullion markets, projecting gold could reach $5,400 per ounce by year-end after a 17% decline. The forecast rests on expectations of two Federal Reserve rate cuts and sustained central bank purchases averaging 60 tonnes monthly.
2. Downside and Risk Factors
Analysts note potential tactical downside to $3,800 per ounce should energy supply pressures escalate. They also highlight that ongoing geopolitical tensions could drive further diversification away from Western assets, offering an additional upside catalyst for precious metals.