Bullish forecasts strengthen in the gold market despite Fed decisions
Despite global interest rate hikes and high bond yields, gold maintains its strong stance, prompting analysts to revise their year-end and long-term targets upward.
Defying conventional wisdom as the gold market remains strong despite the Fed's rate hike and high bond yields, analysts have shared ambitious forecasts of over $5,000 for year-end and above $7,000 for 2027 for spot gold.
Gold remains resilient despite the Fed's move
While the Fed raised its policy rate by 25 basis points this week to the 3.75-4 percent range, statements by Fed Chair Kevin Warsh strengthened expectations that a new rate hike could arrive by the end of the year. Under normal conditions, rising interest rates and the U.S. 10-year Treasury yields hovering near the 5 percent level reduce the appeal of non-yielding gold, yet the expected heavy sell-off did not materialize.
Investors' focus has shifted
According to analysts, investors are no longer focusing on individual Fed rate decisions, but rather on larger risks. U.S. rising budget deficits, concerns over public finances, geopolitical risks, and shifts in global reserve preferences continue to support gold.
Critical technical levels and resistance
From a technical perspective, the $4,420 to $4,440 range is being monitored as a critical resistance zone for gold. According to Saxo Bank Head of Commodity Strategy Ole Hansen, surpassing this resistance zone could bring the 200-day moving average at $4,540 into focus, while $4,343 and $4,303 levels are being watched in downward movements.
Ambitious year-end and 2027 targets
According to FXEmpire analysis, sustained closes above $4,400 could signal the formation of a temporary bottom, and it was projected that the ounce price could reach $5,000 before the end of the year. In long-term forecasts, it was stated that if gold maintains its upward trend, it could exceed $7,000 per ounce in the second half of 2027.