Deutsche Bank and Goldman Sachs cut gold price targets by up to 22% amid shifting Fed rate expectations and geopolitical developments.
Gold August futures fell to $4,134.90 per troy ounce Tuesday morning after opening at $4,210.80, a 0.2% increase from Monday’s close. The decline follows revised forecasts from major banks, reflecting tempered bullish sentiment.
Deutsche Bank lowered its third-quarter target to $4,300, a 22% reduction, and its year-end forecast to $4,800, down 17%. Goldman Sachs last week cut its year-end projection by $500 to $4,900, citing no expected Fed rate cuts this year. Analysts warn gold could drop to $3,800 if multiple rate cuts materialize.
Prices remain under pressure after a 6.8% decline over the past month, with geopolitical progress between the U.S. and Iran further weighing on demand.