Goldman Sachs cuts year-end gold target by $500 to $4,900

Goldman Sachs lowered its year-end gold forecast by $500 an ounce, setting a new target of $4,900 down from an earlier $5,400. The bank cited expectations that the US Federal Reserve will not cut interest rates this year, pushing potential rate reductions out to March 2027 and December 2027.

"Our gold price views remain structurally constructive but tactically cautious, with near-term downside risk and medium-term upside risk," said commodity analysts Lina Thomas and Daan Struyven. A delay in Fed rate cuts could also weigh on cryptocurrencies, while the war in Iran has pressured both markets.

Bitcoin has fallen 28.3% since January, and gold is down more than 22% from its January all-time high of $5,327 per ounce. Gold now sits about $135 above the $4,000 mark, a level not seen since November. Analysts warned last week that Bitcoin and gold may face further headwinds after a 4.2% annual increase in the US Consumer Price Index in May and ongoing conflict in the Middle East.

United States

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