Banks Cut Gold Price Targets Amid Changing Fed Outlook

Four major banks, Goldman Sachs, JPMorgan, Bank of America, and HSBC, have revised their gold price targets for 2026. The revisions are all downward, with some banks cutting their forecasts by as much as $1,200 an ounce. According to the World Gold Council, central banks bought a record 288.9 tonnes of gold during the second quarter of 2026, despite falling prices.

Goldman Sachs removed its remaining 2026 rate cuts from its forecast when it lowered its target to $4,900 an ounce. The bank attributed the change in its view of gold to a changed Federal Reserve outlook rather than a new view on gold itself. Similarly, Bank of America cut its full-year average forecast by 14% to $4,360 an ounce, citing a more hawkish Fed.

Morgan Stanley's Amy Gower wrote that gold had reached the bank's fourth-quarter forecast of $4,450 faster than expected and now sees a path above $5,000 during 2027. In contrast, Wells Fargo cut its target to $4,900 to $5,100 an ounce in August, after previously raising it to $6,100 to $6,300 in February.

Gold itself has been volatile, with a 21% pullback from January's record high. However, the cuts made by these banks have not kept pace with price movements, with gold sitting below five of the six revised figures at around $4,435 an ounce.