Goldman Sachs Cuts Gold Price Target as Markets Brace for Another Fed Hike

Goldman Sachs slashed its end-2026 gold target to $4,150 an ounce from $4,650, citing a hawkish Fed.

Goldman Sachs lowered its gold price projections, saying a more hawkish US Federal Reserve is hurting investor demand.

The cuts were made in a Nov. 5 report by analysts Lina Thomas and Daan Struyven titled "Precious Metals Analyst Report: Long-Term Bullish on Gold, But Not Now.

The analysts slashed its 2026 year-end target to $4,150 an ounce from $4,650, while also cutting its 2027 year-end target to $4,800 from $5,400.

The bank's base case is that the Fed will raise rates again in December 2026 as the government agency looks to keep "currency debasement" under control.

The strategists said the current setup looks more like 2022, when central banks gave gold strong support, but the elevated interest rates weighed on investors' moves.

Central bank buying has remained the biggest support for the market, according to Goldman.

“We retain our longer-term constructive view on structurally strong central bank demand – which drives most of the 15% price upside we forecast by end-2027,” the strategists wrote.

Goldman also added a bullish undertone to its report, adding that it expects gold to find more support once the Fed starts cutting rates in the second half of 2027.

The bank said lower rates would remove the limit that high rates place on gold and let private investor demand compete again with central bank buying.