Goldman Sachs trims gold forecasts as Fed stays hawkish
GLD•Goldman Sachs cut its end-2026 gold price forecast to $4,150 per ounce from $4,650 and its end-2027 forecast to $4,800 from $5,400, citing the Federal Reserve’s more hawkish stance.
1. Lower price forecasts
Goldman Sachs said potentially higher oil prices could add pressure on gold through systematic selling. Sharp equity drawdowns could initially pull prices lower as margin calls and broader deleveraging prompt investors to raise cash.
2. Demand remains supportive
The bank said structural central bank demand remains supportive, while private wealth and other long-term investors may value gold as insurance against fiscal sustainability risks. Spot gold rose to a more than two-week high on Thursday as the dollar and Treasury yields weakened after lower oil prices eased inflation concerns.
