September 18 International Forex News

September 21, 2026

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Goldman Sachs maintains its bullish forecast for gold, predicting it will reach $5,400/oz by 2027 despite recent Fed rate hikes slowing short-term growth. The bank highlights central banks' reserve diversification as a key structural factor supporting gold's long-term appreciation. However, Fed rate increases could trigger short-term corrections, potentially pushing gold to $4,070/oz if hawkish policies persist. Even so, central bank purchases are expected to stabilize gold prices around $4,200/oz by the end of 2026. Meanwhile, Trump and Fed Chair Kevin Warsh maintain good terms after an interest rate hike but may face challenges if another hike occurs soon.

Goldman Sachs: Fed Rate Increases May Slow Gold's Rally but Will Not Stop It

September 18: Goldman Sachs maintained its forecast that gold will reach USD 5,400/oz by the end of 2027. The bank said that although the United States had most recently raised interest rates, tighter monetary policy could slow gold's advance but would not alter its long-term bullish outlook.

Goldman Sachs said in a report that it expected "the impact of tighter monetary policy to be reflected primarily in a slower short-term appreciation path for gold rather than a reduction in the terminal gold price."

The continued diversification of reserves by central banks remains the principal structural factor supporting the bank's bullish outlook for gold.

Goldman Sachs noted that gold could undergo a more substantial correction if the Federal Reserve adopted a more hawkish policy stance. If the Fed raises rates three more times this year and signals that the terminal rate will rise further, gold could fall to approximately USD 4,070/oz.

However, continued gold purchases by central banks are expected to support the market, allowing gold prices to recover to approximately USD 4,200/oz by the end of 2026.

Trump and Warsh Remain on Good Terms After Rate Increase, but Another Hike Could Strain Their Relationship

September 18: Nick Timiraos, The Wall Street Journal's chief correspondent covering Federal Reserve monetary policy, wrote that Trump had repeatedly criticized the Fed for keeping interest rates excessively high.

However, after the Fed raised rates this week, Trump claimed that he had already expressed his approval of the decision during a telephone conversation with Fed Chair Kevin Warsh several days before the announcement.

People familiar with the matter said the call between Trump and Warsh came as a surprise to many of the president's close advisers. The apparent truce clearly indicates that Warsh has temporarily reversed the previously tense relationship in which the White House regarded the Federal Reserve as an adversary.

The risk is that this situation may last only until the Fed raises rates again. A senior administration official said that if the Fed decided to raise rates again in October, immediately before the midterm elections, Warsh could find himself facing greater scrutiny from Trump and his advisers.

Trump's portrayal of a hostile Federal Reserve committee could leave investors questioning whether Warsh is actually leading the Fed or being carried along by it.

September 17 International Fertilizer and Agricultural News

September 18 International Fertilizer and Agricultural News