Goldman Sachs has delayed its gold price forecast of $3,000 per ounce from the end of 2024 to mid-2026, citing an unexpected slowdown in monetary easing by the Federal Reserve, according to a Bloomberg report. Gold is now expected to reach $2,910 per ounce by year-end, attributed to weaker demand for gold-backed ETFs due to reduced market uncertainty following the U.S. elections.
The report also notes that weaker speculative demand and increased central bank purchases have offset each other, keeping gold prices within a specific range.
The report projects that central banks will average gold purchases of 38 tons per month through mid-2026 and emphasizes that central banks’ continued appetite for gold will remain a key driver of prices in the long term.
Gold surged by 27% last year, driven by monetary easing, safe-haven demand, and central bank buying. However, the rally stalled in November as the dollar strengthened after the U.S. elections. Recently, signals from the Federal Reserve to proceed cautiously in reducing borrowing costs amid inflation concerns have pressured gold prices.
Goldman Sachs has also revised its interest rate cut expectations, now predicting a reduction of 75 basis points in 2024 instead of 100 basis points.
The bank expects core inflation to decline in line with dovish market expectations At the same time.
