Gold climbed to a weekly high of $4,439.80 per troy ounce on Friday, September 18, 2026, as fading inflation concerns following the Federal Reserve's first rate hike in three years pushed the metal above $4,400. Goldman Sachs kept its $5,400-an-ounce forecast for the end of 2027, pointing to central bank buying as gold's main structural driver even as rate hikes weigh on near-term ETF demand.
Gold hit a weekly high of $4,439.80 per troy ounce on Friday, September 18, 2026, breaking above $4,400 after holding in the $4,300 range since the prior Friday. December futures traded at $4,421.40 an ounce as of 6:46 a.m. ET, up from an opening price of $4,381.60 that had been down 0.4% from Thursday's close.
Rate hike and pipeline restoration ease inflation fears
The Fed's decision to raise rates for the first time in three years, combined with the ongoing restoration of Saudi Arabia's key East-West pipeline, has prompted inflation concerns to fade among investors. As a result, oil prices continue moving lower: Brent crude traded at $98.46 a barrel as of 6:39 a.m. ET Friday, down from over $99 a barrel Thursday morning and more than $107 a barrel Wednesday.
Goldman keeps $5,400 target for 2027 despite Fed hikes
Goldman Sachs maintains a bullish gold view, and Fed rate hikes should slow rather than derail the rally, according to analyst Lina Thomas. Thomas reiterated a $5,400-an-ounce forecast for the end of 2027, even after this week's Fed rate hike and with economists now expecting another increase in October.
However, Thomas trimmed her year-end 2027 fair value estimate to $4,650 an ounce from $4,900, still above the recent spot price of about $4,350, noting much of the tightening is already priced into ETF demand. According to Thomas: "grind higher in the near term", with stronger-than-expected central bank purchases offsetting the remaining drag from higher rates.
Central bank buying drives Goldman's appreciation forecast
Central bank buying remains the main structural driver, contributing nearly all of Goldman's expected 23% appreciation through the end of 2027, with purchases running at about 91 tonnes a month, well above the pre-2022 average of 17 tonnes. Thomas noted that risks remain skewed to the upside, with resilient call-option demand for gold as a macro-policy hedge, but flagged greater two-sided volatility ahead.
Sources: Yahoo Personal Finance, Commodities & Futures News
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