Goldman Sachs has revised its year-end gold price forecast lower, reducing its December 2026 target by $500 to $4,900 per ounce. The adjustment reflects the bank's updated expectation that the U.S. Federal Reserve will not implement any interest rate cuts during the year, a development that could limit the upside potential for bullion prices.

According to analysts Lina Thomas and Daan Struyven, the absence of anticipated monetary easing in the United States is expected to weigh on investor demand for gold relative to earlier forecasts. Higher interest rates generally increase the opportunity cost of holding non-yielding assets such as gold, making the precious metal less attractive compared with interest-bearing investments.

Despite the reduced target, Goldman Sachs continues to maintain a constructive outlook on gold prices. The revised forecast still implies meaningful gains from current levels during the second half of 2026. The bank believes that ongoing purchases by central banks and sustained investment demand through exchange-traded funds could continue to support the precious metal.

Gold was trading near $4,168 per ounce at the time of the report and was on track for its third consecutive weekly decline. Market participants remain focused on the future path of U.S. monetary policy, inflation trends, and global economic conditions, all of which play a significant role in determining the direction of gold prices.

The revised outlook highlights how expectations surrounding Federal Reserve policy continue to influence commodity markets, particularly precious metals, where interest rate movements often have a direct impact on investor sentiment and price performance.