Wells Fargo Lowers Gold Price Target Amid Rate Concerns

Wells Fargo Investment Institute has lowered its price target for gold due to rising interest rates and a stronger dollar. The institute reduced its year-end gold target for 2027 from $5,400-$5,600 to $5,200-$5,400 per troy ounce.

The analysts cited that gold's appeal is diminished as interest rates increase because it does not pay interest. A stronger dollar also makes it a potentially attractive alternative to gold.

Despite the reduced price target, the institute continues to see upside potential for gold prices through 2027. Central bank gold purchases are recovering after slowing down in the first quarter of 2026, and exchange-traded fund flows into gold turned positive in July and strengthened through August.