Gold demand persists despite high interest rates and record forecast is maintained
Despite tight monetary policies by global central banks and a high interest rate environment, gold maintains its strong demand, while Goldman Sachs reiterated its year-end 2027 expectation.
Despite the US Federal Reserve's tight monetary policies and high interest rate environment, gold maintains its strong course in global markets. While the decline in oil prices and the weakening of the dollar support demand for the precious metal, Goldman Sachs maintained its end-of-2027 gold price forecast at $5,400.
The course of gold prices in global markets
In global markets, gold continues to remain in focus for investors despite the US Federal Reserve's recent rate hike move and ongoing tight monetary policies.
Weakening of the dollar and spot gold
The approximately 1 percent drop observed in oil prices and the retreat of the US dollar from peak levels supported demand for the precious metal.
This relaxation in the dollar index made gold a much more attractive investment instrument for investors holding different currencies.
Changes in spot and gram gold prices
In light of these developments, the spot price of gold gained 0.2 percent in value to climb to $4,346.65.
In domestic markets, gram gold was traded at the level of 6,870 TRY with a 0.70 percent increase.
Fed policies and Goldman Sachs expectation
The Fed, which increased its policy rate during the week, signaled to the markets that additional tightening steps are also on the table in the upcoming period.
Major investment bank Goldman Sachs kept its end-of-2027 gold price forecast stable at the $5,400 level in its recently published analysis.
Hawkish stance of central banks
While the Bank of England decided to keep interest rates steady at its recent meeting, it warned that new rate hikes could come to the agenda in the future.
The Bank of Japan is expected to raise interest rates to the highest level in 31 years and maintain its hawkish stance.