Goldman Sachs Lowers Gold Forecast to $4,900 as Fed Rate Cut Outlook Weakens

Goldman Sachs has cut its year-end gold price forecast by $500, lowering the target to $4,900 per ounce. The revision reflects expectations that the US Federal Reserve may delay interest rate cuts, potentially pushing easing cycles into 2027.

Despite the downgrade, analysts still expect gold to remain elevated compared to historical levels, supported by long-term demand trends. However, the bank now sees more near-term downside risk as tighter monetary policy reduces investor appetite for non-yielding assets like gold.

Gold has already fallen more than 22% from its January peak of $5,327 per ounce, leaving prices close to the $4,000 threshold.

Rate Policy Shift Also Impacts Crypto Market Outlook

Stronger for longer interest rates are also expected to affect risk assets such as Bitcoin, which has already dropped over 28% since the start of the year. Analysts say higher yields on bonds and cash make both gold and cryptocurrencies less attractive in the short term.

Market data suggests uncertainty remains high, with expectations that US rates could stay elevated through most of 2026.