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2026-11-06 09:14:27
Goldman Sachs Lowers Gold Price Forecasts for 2026 and 2027, Citing Fed Hawkish Stance Suppressing Investment Demand. 1. Goldman Sachs on Thursday lowered its year-end 2026 gold price forecast to $4,150 per ounce from $4,650, and its year-end 2027 forecast to $4,800 per ounce from $5,400. The bank stated that the main reason for the downward revision was the more hawkish stance of the Federal Reserve in recent months. 2. Goldman Sachs stated that global central bank buying continues to provide strong structural support for gold prices, but rising interest rates have weakened investor holdings, resulting in a relatively moderate net increase in gold prices. The bank expects the Federal Reserve to cut interest rates in late 2027 or early 2028, at which point the constraint of interest rates on gold prices is expected to weaken, and private investor demand may once again support gold prices in conjunction with central bank structural buying. 3. In Goldman Sachs' scenario, if the Federal Reserve raises interest rates again in March and the final rate of this round is higher, gold prices could reach $4,660 per ounce by the end of 2027. The bank also warned that rising oil prices could increase downward pressure on gold prices through systemic selling; a sharp correction in the stock market could force investors to raise cash due to margin calls and broader deleveraging, thus initially dragging down gold prices. However, Goldman Sachs believes that structural demand from central banks will continue to support gold prices, and private wealth management institutions and other long-term investors may also view gold as a tool to hedge against fiscal sustainability risks.
