Goldman Sachs Lowers Year-End Gold Forecast By $500, Questions Rate Cuts

This article is for informational purposes only and does not constitute financial or investment advice. Markets are volatile — always do your own research before making investment decisions.

Goldman Sachs has reduced its year-end gold price target by $500, making it $4,400. The bank shows there is rising doubt about Federal Reserve rate cuts in 2026.

“Rob Kaplan, Vice Chairman of Goldman Sachs and former President of the Dallas Fed, told Bloomberg Television this week that the Fed could begin hiking rates as early as September”, according to MSN’s coverage.

— Rob Kaplan

Goldman Sachs now expects the Fed to keep rates steady throughout 2026. This contrasts with earlier views expecting rate cuts to boost economic growth, reports Athens Times. The Federal Reserve held its benchmark rate steady recently but hinted at possible hikes later in the year.

Rob Kaplan, former Dallas Fed President and Goldman Sachs Vice Chair, mentioned the Fed could hike rates starting September 2026 on Bloomberg TV.

Impact of ETF inflows and central bank purchases

Gold-backed ETFs and central banks have continued buying physical gold. Even so, these inflows have not fully balanced uncertain pressure from rates. Goldman Sachs earlier expected strong ETF and central bank buying would push the year-end target higher.

Central banks, especially in Asia and the Middle East, remain major gold buyers. Their activity helps support gold’s demand fundamentals, adding long-term strength to the market.

Looking ahead: Factors to monitor for gold’s outlook

Going forward, Goldman Sachs and others will track Fed inflation reports, jobs data, and global economy reports closely.

Goldman Sachs pushes Fed rate-cut call to 2027 on strong US jobs data https://t.co/dPfjCYhmb6

— Reuters (@Reuters) June 8, 2026