Goldman Sachs lowers its 2026 gold price target by $500 amid delayed Fed rate cuts and a stronger dollar outlook.
Goldman Sachs reduced its year-end gold price target to $4,900 from $5,400, marking a $500 cut. The adjustment follows the Federal Reserve’s hawkish stance, which pushed expected rate cuts to 2027, weakening gold’s appeal relative to bonds and cash.
The bank had previously forecast aggressive rate cuts in 2026, supporting a higher gold price. However, the Fed’s latest meeting, led by new Chair Kevin Warsh, signaled a more hawkish tone, delaying cuts to June and December 2027. This shift undermines gold’s attractiveness as a non-yielding asset.
Analysts Lina Thomas and Daan Struyven cited the Fed’s policy shift and broader macroeconomic factors for the revised forecast. Despite the cut, the new target still implies gains from current levels.