Goldman Sachs reduced the forecast for the gold price of 2027. New numbers here
Goldman Sachs has down the gold price estimate of up to the end of its 2027 to $4,650 per ounce, which was first $4,800. The reason for this deduction is a more difficult environment in the near future, as more interest rates increase by the Federal Reserve can suppress the metal demand of private investors
The new estimate is $150 or 3.1% lower than the previous estimate. Yet the bank assumes that the current spot prices by December 2027 are likely to go up to 16%, as he expects that the Federal Reserve will reinforce the demand for private investors after starting to down the interest rates at the end of the next year
Goldman Sachs holds a positive stance towards gold over a long period, as structurally robust shopping of central banks, especially the frequent shopping of China’s central bank, supports it
Now the bank’s economist believes that the Federal Reserve will increase the interest rate of the third 25 bases point in March 2027, which will come after the second growth expected in December 2026, which was previously included in the base case
High Federal Funds Rate will be pressured by the beginning of 2027 on the positioning of private-sector investors, which will adversely affect gold, even if the purchase of central banks continued
Goldman has estimated its price for December 2027 to the bottom, as he coincides with the downside cinario mentioned earlier, and it shows the possibility of long-term stringent monetary policy
The Bank believes that the Federal Reserve will begin to simplify the monetary policy in December 2027, leading to a significant barrier at gold prices and the investor will resume demand. This resurrection, as well as structural shopping of the constant central bank, will help the gold to reach $4,650 per ounce by the end of 2027, Goldman said
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Findings for Gold traders:
If the rates of the Federal Reserve continue to grow further in the near future, then the prices of gold will be under pressure, but by the end of 2027, the prices can be seen with a significant rise. Traders should prepare the portfolio by taking into account this two-tier risk