Goldman Sachs lowered its December 2026 gold price forecast by $500 to $4,900 per ounce.
The revision follows the Federal Reserve's decision to hold interest rates steady. Policymakers signaled that no rate cuts are expected for the remainder of the year.
Analysts cited a more hawkish stance under Fed Chairman Kevin Warsh as a primary driver. Goldman economists have delayed their expectations for rate cuts until 2027.
A higher-for-longer interest rate environment increases the opportunity cost of holding non-yielding assets. While structurally constructive on the long-term outlook, the bank is tactically cautious due to current monetary policy.
Goldman Sachs warned that gold prices could fall to $4,400 per ounce if the Fed implements further rate hikes.