Goldman lowers year-end gold price forecast on hawkish Fed shift

Investing.com · Vahid Karaahmetovic · 2026-11-06 07:44 UTC

Goldman lowers year-end gold price forecast on hawkish Fed shift

Investing.com -- Goldman Sachs slashed its gold price forecasts, citing the Federal Reserve’s hawkish shift in recent months and its effect on investor positioning, while keeping a constructive longer-term view tied to strong central bank buying.

Strategists led by Lina Thomas lowered their end-2026 forecast to $4,150 an ounce from $4,650, and their end-2027 forecast to $4,800 from $5,400. Goldman’s base case assumes the Fed’s recent hawkish shift and a December rate hike will keep investor "debasement concerns" contained.

As a result, the bank expects demand for gold as a hedge against macro-policy risks, reflected in call-option demand, to normalize toward its historical average instead of returning to elevated levels seen earlier this year.

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