Goldman Sachs Statement on Gold Price After Fed Decision
Despite the US Federal Reserve's interest rate hike, Goldman Sachs kept its per-ounce gold forecast for the end of 2027 unchanged.
Goldman Sachs announced that, despite the interest rate hike by the US Federal Reserve (Fed), it maintains its end-2027 gold price forecast at $5,400 per ounce. The bank stated that tight monetary policy may slow down the rise, but will not change the long-term positive outlook.
Gold Forecast Maintained
Goldman Sachs maintained its end-2027 gold price forecast at $5,400 per ounce despite this week's interest rate hike by the US Federal Reserve. The bank assesses that tighter monetary policy could slow down the rise in gold, but does not alter the long-term upward expectation.
Latest Situation in Markets
Gold prices continued their upward trend on the final trading day of the week, supported by the weak course of the dollar and the decline in oil prices. While spot gold traded above $4,390, oil prices saw a decline of approximately 1.5%.
Fed's Interest Rate Decision
At its meeting on September 16, the Fed raised its policy rate by 25 basis points to the 3.75-4.00% range. This decision marks the Fed's first interest rate hike in over three years.
Future Expectations
Goldman Sachs announced that it expects another 25 basis point rate hike in October following the Fed. Rising interest rates can put pressure on the precious metal, as they can reduce the appeal of non-yielding gold compared to bonds and similar assets.