Goldman Sachs cuts year-end gold target by $500, doubting rate cuts
Cointelegraph 2026-06-19 08:05:37
Context: Goldman Sachs has revised its year-end forecast for gold to $4,900, a $500 decrease from its previous estimate of $5,400, citing expectations that the US Federal Reserve won't cut interest rates this year. The revised target indicates an increase from current levels, but less than previously expected. This change comes as the Fed is expected to maintain or raise interest rates, with the next potential rate cuts pushed to 2027.
Key Facts
- Goldman Sachs lowered its year-end gold forecast by $500 an ounce, citing expectations that the US Federal Reserve won’t cut interest rates this year, and revised its target to $4,900.
- The bank's commodity analysts, Lina Thomas and Daan Struyven, stated that their gold price views remain structurally constructive but tactically cautious, with near-term downside risk and medium-term upside risk.
- A delay in US interest rate cuts could also weigh on cryptocurrencies, as lower interest rates tend to be favorable for digital assets such as Bitcoin, which has fallen 28.3% since January.
- Gold has declined more than 22% since its January all-time high of $5,327 per ounce and is now just $135 away from dipping below $4,000, a level not seen since November.
- CME’s FedWatch tool shows a high chance of rates staying the same or rising in the remaining months of 2026, compared with the current target rate of 3.5% to 3.75%.