12:10 - 19.06.2026
June 19, Fineko/abc.az. Goldman Sachs, the world's leading investment bank, has revised down its expectations for the precious metals market and lowered its forecast for the price of gold by $500 per ounce at the end of 2026 amid fading hopes for a reduction in interest rates by the US Federal Reserve.
ABC.AZ informs that the bank lowered its December gold target from previous $5,400 to $4,900 per troy ounce. The report by analysts Lina Thomas and Daan Straven emphasizes that the precious metal will maintain an upward trend in the 2nd half of the year, but its growth rate will be more moderate than previously expected.
Key factors of the forecast revision:
Fed rate expectations shift: Goldman Sachs economists no longer predict a reduction in interest rates by the regulator this year, postponing expectations for the first rounds of easing to June and December 2026. The "hawkish" attitude of the Federal Reserve supports the US dollar and restrains the quotes of non-interest-bearing gold.
ETF inflows under pressure: Analysts also expect weaker than planned capital inflows into gold exchange-traded funds (ETFs) from institutional investors.
Tactical caution: Despite the reduction in the short-term target, Goldman Sachs maintains a constructive long-term view of gold as a defensive asset. Nevertheless, investors are advised to exercise caution: in the event of a second Fed rate hike, gold may adjust to the level of $4,400 by the end of the year.
