Goldman Sachs Lowers Gold Target, Delaying Rate Cuts May Weigh on Bitcoin

Goldman Sachs has reduced its year-end gold forecast by $500 an ounce to $4,900. The bank expects gold to rise from current levels but sees a smaller move than previously anticipated. This revision comes as Goldman no longer expects the Federal Reserve to cut rates in 2026. Instead, they now predict rate cuts will arrive in 2027.

The bank's commodity analysts, Lina Thomas and Daan Struyven, stated their view remains 'structurally constructive but tactically cautious,' with near-term downside risk and medium-term upside risk. This means the bank still sees gold as a long-term investment opportunity but is cautious in the short term.

The Federal Reserve's decision to hold rates steady at 3.50% to 3.75% on June 17 contributed to the revision. The central bank pointed to inflation remaining above its 2% target and price pressure linked partly to energy, making gold less attractive compared to bonds and cash.

This development may also weigh on Bitcoin, as lower rates often support digital assets by improving liquidity and reducing the cost of capital. A delayed rate-cut cycle can reduce demand for cryptocurrencies like Bitcoin.