Wells Fargo Lowers Gold Price Target Amid Rising Rates and Stronger Dollar

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

The analysts at Wells Fargo noted that gold's appeal diminishes as interest rates increase because the metal does not pay interest. A stronger dollar also acts as an attractive alternative to gold.

Despite this, the institute still sees upside potential for gold prices through 2027 and expects demand to remain driven by concerns over geopolitics, currency debasement, and market uncertainties.