Goldman Sachs lowers gold target price, expects the Federal Reserve will not cut interest rates this year

BlockBeats News, June 19—As the expectation that the Federal Reserve will cut interest rates in 2026 fades, Goldman Sachs has lowered its year-end gold price forecast by $500 per ounce.

Analysts Lina Thomas and Daan Struyven said in a report: “We have revised down our December gold target price to $4,900 per ounce, implying that gold prices are still expected to rise in the second half of the year, but the increase will be less than previously anticipated. Our outlook on gold remains structurally constructive, but tactically cautious, with near-term downside risks and medium-term upside risks.”

The analysts said the downward revision is due to Goldman Sachs economists pushing back their U.S. rate-cut expectations to June and December next year, previously expected to be December 2026 and March 2027. They also said that it is driven by lower forecasts for gold ETF inflows. In addition, they added that given the “surprisingly hawkish” nature of the Fed’s first meeting under Wosh, concerns about the central bank’s independence may be limited. (Jin10)