Goldman Sachs Predicts Two Fed Cuts, Raises Gold Target to $2,700

Goldman Sachs, $GS, has revised its economic forecasts, indicating a shift in expectations for both interest rates and gold prices, per Bloomberg. The financial institution now anticipates the Federal Reserve to implement two interest rate cuts this year, a reduction from its previous forecast of three, following higher-than-expected consumer price increases in March. Concurrently, Goldman Sachs has upgraded its gold price forecast significantly, setting a new target of $2,700 per troy ounce by the year's end, up from $2,300. This adjustment reflects Goldman Sachs' analysis of market conditions, including the pricing of fewer Federal Reserve cuts and factors contributing to stronger economic growth.