Goldman Sachs Reduces Gold Price Target to $4,900 Amid Fed Changes

AI Summary

Goldman Sachs cut its year-end gold price target by $500, down to $4,900 from $5,400, citing changes in Federal Reserve policy. The Fed has pushed back anticipated rate cuts to June and December 2027, which reflects a more hawkish stance than previously expected. Goldman analysts noted that lower inflows into gold ETFs also contributed to the revised forecast. If the Fed raises rates instead of holding, Goldman warns gold could drop to $4,400 by year-end, emphasizing a noted shift in market conditions affecting demand.