Gold Price Resilience: Goldman Sachs and UBS Stand Firm Amid Rate Hike
Goldman Sachs and UBS maintain their bullish stance on gold despite the Federal Reserve's recent 'hawkish rate hike'.
The Fed raised interest rates by 25 basis points to 3.75%-4.00% on Wednesday, citing strong economic activity, resilient consumption, and persistently high inflation.
Goldman Sachs still predicts a gold price target of $5,400 per ounce by the end of 2027, while UBS expects the price to reach $4,600 per ounce by December 2026 and $5,000 per ounce by March 2027.
UBS strategist Giovanni Staunovo noted that the rate hike will put short-term downward pressure on gold due to higher US real yields and a stronger dollar.
However, he emphasized that this rate decision had been widely expected and would not undermine gold's long-term investment value.