📉 GOLDMAN SACHS CUTS ITS PRICE TARGET FOR GOLD TO $4,900! 🦅
The financial giant has shaken up the commodities boards by slashing its year-end forecast for the precious metal for a heavy reason: the Federal Reserve won't be lowering rates this year.
📌 Key points from the report:
The Cut: Goldman Sachs reduced the gold target by $500, dropping from its previous projection of $5,400 to a new expectation of $4,900 per ounce.
The "Kevin Warsh Effect": Following the surprising hawkish stance of the new Fed chair, the market no longer anticipates rate cuts in 2026. Instead, the odds of a rate hike in December skyrocketed to 87%, which undermines gold, as it doesn't yield direct returns.
There's still bullish ground: While they tempered short-term enthusiasm, structural analysts Lina Thomas and Daan Struyven clarify that gold is still on track to recover in the second half of the year from its current levels close to $4,300.
⚠️ Risk Alert: Goldman warns that if the Fed decides to raise rates ahead of schedule (like in September), the demand for gold as a macroeconomic hedge could quickly crumble, pushing prices down to $4,400.
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