Goldman lowered its 2026 gold forecast by $500 as a hawkish Fed outlook dims bullion’s appeal, with rising real yields and dollar strength pressuring prices.
Goldman Sachs lowered its 2026 gold price forecast by $500, directly citing the Federal Reserve’s hawkish policy outlook. The revision implies bearish pressure on gold as higher real rates and a stronger dollar reduce its appeal.
The article does not specify the exact target, but the $500 cut implies a significant downward revision from the previous forecast, likely placing the target well below earlier estimates.
A hawkish Fed, signaling higher interest rates for longer, raises opportunity costs of holding non-yielding gold and strengthens the dollar, both of which weigh on bullion prices.
Goldman Sachs slashed its 2026 gold price target by $500 per ounce, citing a more restrictive Federal Reserve policy path. The bank expects higher real rates and a stronger dollar to curb bullion demand through year-end. The downgrade marks a sharp reversal from earlier bullish calls and underscores mounting headwinds for gold.
Goldman lowered its target due to a more hawkish Federal Reserve outlook, which implies higher real interest rates and a stronger U.S. dollar, both typically negative for non-yielding gold.
Goldman’s forecast cut suggests gold may struggle to rally if the Fed keeps monetary policy tight. Investors should brace for potential downside or limited upside through year-end.