Goldman Sachs Lowers Gold Price Target, Expects No Rate Cut by the Fed This Year

June 19 — Goldman Sachs has slashed its year-end gold price forecast by $500 per ounce, as the firm no longer projects a Federal Reserve rate cut in 2026, according to a new report from analysts Lina Thomas and Daan Struyven. In their note, the pair revised their December gold price target down to $4,900 per ounce. While gold is still expected to climb in the second half of the year, those gains won’t be as steep as initially anticipated. The analysts maintained a structurally constructive long-term outlook for gold but adopted a cautious tactical stance, highlighting near-term downside risks alongside medium-term upside potential. The revision stems from two core shifts: Goldman Sachs economists pushed back their U.S. rate cut expectations to June and December of next year, moving away from their prior forecast of a cut in December 2026 and March 2027. The firm also lowered its projection for gold exchange-traded fund (ETF) inflows. Additionally, the analysts noted that concerns over central bank independence are limited, given the “surprisingly hawkish” tone from the Federal Reserve’s first meeting under Chair Powell’s leadership. (FXStreet)