Wells Fargo Cuts Gold Price Target Amid Hawkish Fed Stance
Wells Fargo Investment Institute has lowered its gold price target for the rest of 2026 to $4,900 to $5,100 an ounce from its previous range of $5,300 to $5,500. This is the third revision in 2026 alone and marks a significant drop from the original February forecast of $6,100 to $6,300.
The bank attributed the downward revision to the Federal Reserve's hawkish stance, which led to a stronger dollar, higher Treasury yields, and reduced central bank buying. Spot gold was trading around $4,397 an ounce on August 18, with investors facing a real cost to hold gold instead of bonds, which pay interest.
Despite the revised target, Wells Fargo still expects gold to go higher, with the new 2026 range implying 11% to 16% upside. The bank's 2027 target also dropped to $5,400 to $5,600 from $5,800 to $6,000.
The difference between a target cut and a bearish reversal is crucial for investors who have been using Wall Street price targets to frame return expectations. Wells Fargo's revised target means that gold will not climb as fast or go as far as the bank thought in February.