Goldman Keeps $5,400 Gold Forecast Intact Amid Fed Hike

Goldman Sachs has maintained its end-2027 gold price forecast at $5,400 per troy ounce despite this week's Federal Reserve rate hike. The bank believes tighter monetary policy will slow down gold's rally but not derail it.

On Friday, gold prices ticked higher to trade above $4,355 an ounce, supported by a 1% fall in oil prices and a softer US dollar. Lower oil prices make dollar-priced commodities cheaper for holders of other currencies, while a weaker dollar has provided a modest tailwind for bullion.

The Fed raised interest rates on Wednesday and signaled further hikes ahead, with 16 of the 18 policymakers expecting at least one more quarter-percentage-point increase by year-end. Despite this hawkish signal, Goldman's unchanged long-term call implies that the bank sees the pressure from higher rates as manageable within its broader bullish thesis.