BlockBeats news, on June 19, Goldman Sachs lowered its year-end gold price forecast by $500 per ounce due to no longer expecting the Federal Reserve to cut rates in 2026.
Analysts Lina Thomas and Daan Struyven stated in a report: "We have lowered our December gold price target to $4,900 per ounce, implying that gold prices are still expected to rise in the second half of the year, but by less than previously anticipated. Our structural view on gold remains constructive, but we are tactically cautious, with near-term downside risks and medium-term upside risks."
Analysts noted that the outlook has been downgraded due to Goldman Sachs economists pushing back their expectations for U.S. rate cuts to June and December next year, from the previous forecast of December 2026 and March 2027, as well as lower projections for gold ETF inflows. They added that concerns regarding central bank independence may be limited, given that the first Fed meeting under Waugh was "surprisingly hawkish." (Jin10)