Gold prices have surged nearly 4% since the U.S. midterm elections, but market analysts are divided on the precious metal's future trajectory. Goldman Sachs recently lowered its gold price forecasts, citing a hawkish shift in the Federal Reserve's stance. The bank reduced its year-end 2026 target to $4,150 an ounce from $4,650 and its 2027 forecast to $4,800 from $5,400. Strategists led by Lina Thomas noted that higher interest rates are weighing on investor positioning, despite strong central bank demand.
At the time of writing, spot gold was trading at $4,055.35 an ounce, while spot silver was at $53.32 an ounce. Goldman Sachs maintains a long-term constructive view, expecting central bank purchases of 60 tonnes a month through 2026 and 2027. The bank also warned of potential downside risks if the Fed raises rates again in March 2027 or delays cuts.
Economist Peter Schiff, however, sees a bullish outlook for gold. He predicts that a Democratic-controlled Congress will lead to increased government spending, higher inflation, and larger budget deficits, factors that would drive gold prices higher. Schiff believes gold is poised to rise above $4,100 and urged investors to buy now.
Retail sentiment on Stocktwits was mixed, with the SPDR Gold Shares ETF (GLD) up nearly 1.5% and the iShares Silver Trust (SLV) up more than 2%. Some users expressed optimism, noting strong gains in precious metals mining stocks and ETFs.