Goldman Sachs Downgrades Gold Forecast to $4,900 Amid Delayed Rate Cuts

Goldman Sachs has lowered its year-end forecast for gold to $4,900 an ounce, down $500 from its previous estimate of $5,400. The bank attributed this move to a delayed timeline for Federal Reserve rate cuts, which are now expected in March 2027 and December 2027.

The shift in the rate outlook has forced a reassessment of gold's potential climb this year. Goldman Sachs commodity analysts Lina Thomas and Daan Struyven stated that 'our gold price views remain structurally constructive but tactically cautious, with near term downside risk and medium term upside risk.'

This move comes as gold trades within $150 of the $4,000 level, a 20% drop from its January highs. Bitcoin has fallen approximately 30% in the same period.