Goldman Sachs Predicts Gold Prices Could Reach $5,400/oz by End of 2027

Goldman Sachs analysts are maintaining their positive outlook on gold prices, despite the recent interest rate hikes by the Federal Reserve. According to Lina Thomas, Goldman Sachs analyst, the Fed's rate hikes will slow down gold price gains in the short term but not halt the long-term upward trend.

The firm is projecting a terminal gold price of 5,400 US dollars per ounce by the end of 2027, which remains above the current spot gold price around 4,350 US dollars per ounce. Thomas noted that higher interest rates will still pressure gold prices in the short term through demand for exchange-traded funds (ETFs).

However, Goldman Sachs believes most of the effects from monetary tightening are already reflected in ETF demand. The firm also expects the Fed to cut interest rates three times between September 2027 and March 2028.

The analysts anticipate that stronger-than-expected gold purchases by central banks could offset pressure from higher interest rates. Central bank gold buying is a key structural factor supporting prices, with Goldman Sachs projecting it will account for nearly all of gold's potential 23 percent price increase by the end of 2027.