Goldman Sachs Cuts Gold Price Target: The Fed Has Changed the Rules of the Game, but the Bull Market Logic Is Not Over Yet

Odaily reports that Goldman Sachs analysts Lina Thomas and Daan Struyven, in their November 5 report "Precious Metals Analyst Report: Long-Term Bullish on Gold, but Not Now," lowered their end-2026 gold price forecast from $4,650 per ounce to $4,150, and their end-2027 target from $5,400 to $4,800.

For a bank that has long supported a structural bull market in gold, this is a significant adjustment. But Goldman Sachs still expects central banks to continue buying gold heavily, concerns over the safety of foreign exchange reserves to persist, and ultimately lower U.S. interest rates to provide support for gold prices.

Stephen Innes, a macro market strategist in the international financial community and an expert in foreign exchange and commodities, interpreted the report as saying that what has really changed is the driver structure behind gold's rally: central banks are still increasing their gold holdings, but the Fed's maintenance of restrictive monetary policy is weakening private investors' willingness to buy, especially speculative funds that rely on leverage and options trading.

What is happening in the gold market is this: central banks may still be buying, but leveraged funds are no longer willing to follow them at any cost.