Goldman Sachs Cuts Year-End Gold Forecast, Warns Delayed Rate Cuts Could Hit Crypto

Gold is generally viewed as a safe-haven asset and an inflation hedge, while its price is also influenced by the U.S. dollar and real interest rates. Goldman Sachs had expected Federal Reserve rate cuts and geopolitical risks to support gold, but persistently high rates would raise the opportunity cost of holding the non-yielding metal. Digital assets such as Bitcoin, which similarly depend on liquidity and risk appetite, could also face selling pressure.

Goldman Sachs has cut its end-2026 gold price target by $500 to $4,900 an ounce because it expects the Federal Reserve not to lower rates in 2026. The firm also warned that delayed rate cuts, coupled with shifts in the geopolitical landscape, could curb market liquidity and investors' willingness to take risks, adding downward pressure on Bitcoin and other cryptocurrencies.