Goldman Sachs sharply reduced its gold forecasts: Here are the expectations for 2026 and 2027

While discussions on the direction of gold prices continue in global markets, a critical report has come from the giant US investment bank Goldman Sachs, which will cause investors to redo their calculations. The bank made a sharp downward revision in its gold price forecasts for the next two years, pointing out the tight monetary policy (hawkish) stance of the US Federal Reserve (Fed) that has become evident in recent months.

According to the new forecasts published, Goldman Sachs reduced its ounce gold expectation for the end of 2026 by 500 dollars, from 4 thousand 650 dollars to 4 thousand 150 dollars. The bank's 2027 year-end target was reduced from 5 thousand 400 dollars to 4 thousand 800 dollars with a huge cut of 600 dollars. The report emphasized that the main driving force behind the revision was the Fed's persistent attitude to keep interest rates high.

A DECLINE IN THE STOCK EXCHANGE MAY CREATE A 'TURN TO CASH' IN GOLD

Goldman Sachs analysts also made striking warnings about the potential risks awaiting the gold market. It was noted that a possible rise in oil prices could increase the pressure on gold by triggering algorithmic and systematic sales.

In addition, it was stated that sharp declines in stock markets could also negatively affect gold. In a possible crash in the stock markets, investors will face "margin calls" and may be forced to sell the gold they hold in order to meet their cash needs and close their leveraged positions; It was warned that this would also drive prices down.

CENTRAL BANKS AND THE RICH PEOPLE WILL BE THE POINT OF RESISTANCE

Despite short-term risks and downward price revisions, the report also emphasized that structural factors supporting gold remain on the table. It was stated that the physical gold demand maintained by global central banks within the scope of their strategy to diversify their reserves continues to form a strong basis in prices. It was also stated that private wealth owners and long-term large investors still see gold as the safest "protection shield" against financial sustainability risks in the global economy.

On the other hand, despite this pessimistic long-term report of the giant bank, market dynamics continue to operate differently in the short term. Spot gold showed an upward momentum, reaching the highest level of the last two weeks last Thursday, as the decline in oil prices eased global inflation concerns and the US dollar and bond yields weakened accordingly.