Goldman Sachs cuts year-end gold target by $500, doubting rate cuts
Goldman Sachs cut its year-end gold target by $500 to $4,900 an ounce, saying the Federal Reserve is now less likely to cut rates this year. The bank’s revised outlook assumes the next Fed cuts could be delayed to March and December 2027. Goldman still sees gold as structurally bullish but expects near-term weakness and medium-term upside. Higher-for-longer rates could also pressure cryptocurrencies, since lower rates usually support digital assets like Bitcoin. Bitcoin is down 28.3% since January, while gold has fallen more than 22% from its January high of $5,327. Gold is now nearing $4,000, its lowest level since November. Recent US inflation data and Middle East tensions have added to caution around both assets. Rising rates make non-yielding gold less attractive versus bonds or cash, and markets may be unwinding the “easy money” trade that helped push gold to records earlier this year.
