Key facts
- Goldman Sachs reduced its year-end gold price forecast by $500 per ounce.
- The revised forecast for gold is $4,900 per ounce.
- The Federal Reserve is not expected to cut interest rates in 2026.
- The delay in Fed rate cuts is a primary driver for the gold forecast revision.
- Gold has declined over 22% since its January all-time high.
Goldman Sachs has revised its year-end forecast for gold prices downward by $500 per ounce, setting a new target of $4,900. This adjustment stems from the expectation that the US Federal Reserve will postpone interest rate cuts until at least March or December 2027, a significant shift from previous projections. Commodity analysts at Goldman Sachs described the firm's gold price view as structurally constructive but tactically cautious, anticipating near-term downside risks and medium-term upside potential. The delay in rate cuts, coupled with ongoing geopolitical tensions in the Middle East, is also seen as a potential headwind for cryptocurrencies like Bitcoin. Gold has experienced a decline of over 22% since reaching its all-time high in January, and is currently trading near levels not seen since November. Analysts have cautioned that rising interest rates make holding non-yielding assets like gold less attractive compared to bonds or cash, potentially repricing the 'easy money' thesis that previously supported record highs.