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      Goldman Sachs Adjusts Gold Forecast Amid Federal Reserve Rate Hikes

      Goldman Sachs has revised its year-end 2026 gold price forecast to $4,650 per ounce, down from a previous estimate of $4,900. Despite this adjustment, the investment bank maintains a bullish long-term outlook, reiterating its target of $5,400 per ounce for the end of 2027. This update follows the Federal Reserve's decision to raise interest rates on September 16, with expectations of another hike in October.

      Analyst Lina Thomas noted that while tighter monetary policy is likely to slow gold's near-term price increase, it does not alter the long-term price trajectory. Goldman anticipates that the Fed will implement three rate cuts between September 2027 and March 2028, which could eventually support gold prices. The current spot price is approximately $4,300, indicating that Goldman still sees potential for growth in the gold market despite recent pressures from rising rates and a stronger U.S. dollar.

      Central bank purchases are a significant factor in Goldman's forecast, with official-sector demand currently averaging around 90 tonnes per month, a stark increase from the pre-2022 average of 17 tonnes. This robust demand is credited with driving nearly all of the expected 23% price gain through 2027. Notably, China's central bank has been a consistent buyer, extending its purchasing streak to 22 consecutive months as of August. Thomas cautioned that a more aggressive stance from the Fed could lead to a sharper correction in gold prices, making the balance between rate hikes and central bank demand crucial for market observers.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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