Goldman Sticks to $5,400 Gold Forecast Despite Fed Hike

Goldman Sachs has left its end-2027 gold price forecast unchanged at $5,400 per troy ounce despite this week's Federal Reserve rate hike. The bank sees tighter monetary policy as a headwind that slows gold's rally rather than reverses it.

The Fed raised interest rates on Wednesday and signaled further hikes ahead, with 16 of 18 policymakers now expecting at least one more quarter-point increase by year end. This hawkish signal has kept real yields and the dollar in focus for gold traders.

Despite the challenging backdrop, market participants remain focused on developments in the Middle East and the broader path for global monetary policy, which continue to provide an offsetting source of support for the metal.