Goldman Sachs Slashes Gold Forecast Amid Rate Cut Doubts

Goldman Sachs has lowered its year-end gold forecast by $500 an ounce to $4,900. This decision was made due to expectations that the US Federal Reserve won't cut interest rates this year.

The revised target assumes that the next Fed rate cuts could be pushed to March 2027 and December 2027. Goldman Sachs commodity analysts Lina Thomas and Daan Struyven stated that their gold price views remain 'structurally constructive but tactically cautious, with near-term downside risk and medium-term upside risk.'

A delay in US interest rate cuts could also weigh on cryptocurrencies, as lower interest rates tend to be favorable for digital assets such as Bitcoin.