Goldman Sachs Slashes Gold Year-End Target to $4,900
Goldman Sachs lowered its year-end gold price target by $500 to $4,900 per ounce, citing reduced ETF inflows after the Fed is no longer expected to cut rates in 2026.
Goldman Sachs has cut its year-end gold price target by $500 to $4,900 per ounce, reflecting a shift in monetary policy expectations. The revision comes as the Federal Reserve is no longer anticipated to reduce interest rates in 2026, dampening the outlook for gold-backed ETF inflows.
The downgrade was led by analysts Lina Thomas and Daan Struyven, who maintained a structurally constructive view on gold but adopted a tactically cautious stance. They cited near-term downside risk and medium-term upside potential, with the lower forecast driven primarily by reduced expectations for ETF demand. Gold has historically been sensitive to real interest rates and Fed policy; when rate cuts are delayed, the opportunity cost of holding non-yielding bullion rises, often weighing on prices. For traders tracking these moves, NowPrice's gold page offers real-time pricing to assess current market positioning.
Looking ahead, the analysts flagged that gold could still gain in the second half, but with less upside than previously projected. Key factors to watch include incoming US economic data, any shift in Fed rhetoric, and central bank buying trends, which have been a significant support for gold since 2022. The revised target implies a potential gain from current levels, but the path is now seen as more gradual.