Goldman Sachs Adjusts Gold Price Forecast Amid Fed Policy Expectations

According to Odaily, Goldman Sachs has revised its forecast for gold prices, now expecting them to reach $3,000 per ounce by mid-2026 rather than by the end of this year. This adjustment comes as the market anticipates a reduction in the Federal Reserve's rate cut measures. Analysts Lina Thomas and Dan Struven from Goldman Sachs predict that gold prices will hit $2,910 per ounce by the end of the year. The analysts noted that the easing of uncertainties following the U.S. elections contributed to weaker-than-expected ETF liquidity in December of last year, resulting in a lower pricing starting point for the new year. They highlighted that a decrease in speculative demand has been effectively offset by increased gold purchases by central banks, keeping gold prices within a range over recent months. Central bank gold purchases are expected to remain a key driver of long-term gold prices. Looking ahead, Goldman Sachs anticipates that the average monthly purchase volume will reach 38 tons by mid-2026.