Goldman Sachs has revised its outlook for gold, lowering its end-2027 price forecast to $4,650 an ounce from the previous $4,800. The adjustment reflects a more cautious near-term view, as anticipated Federal Reserve interest rate hikes could dampen private investor demand for the metal.
The bank's revised forecast represents a $150 decrease, or 3.1% down from its earlier estimate. Despite this, Goldman Sachs maintains a positive long-term stance on gold, predicting a 16% upside from current spot prices by December 2027. This optimism is driven by expectations of a recovery in private investor demand once the Fed begins cutting interest rates late next year.
Goldman Sachs anticipates two more interest rate hikes: one in December 2026 and another in March 2027. Higher interest rates are expected to weigh on gold prices through early 2027, even as central banks continue to accumulate the metal. The bank highlights that structural demand from central banks, including China’s central bank, will support gold prices over the longer term.
The revised forecast aligns with Goldman Sachs' previously outlined downside scenario, reflecting the likelihood of tighter monetary policy for an extended period. The bank expects gold to reach $4,650 an ounce by the end of 2027, supported by a rebound in private investor demand and sustained central bank purchases.