Wells Fargo Investment Institute has cut its 2026 year-end gold forecast to $4,900-$5,100 per ounce, down from $6,100-$6,300 at the start of the year, representing roughly a 20% reduction at the midpoint. This is the bank’s third downward revision, following an initial estimate of $4,500-$4,700 in February-March and $5,300-$5,500 in June. The Federal Reserve’s hawkish stance on interest rates has increased the opportunity cost of holding non-yielding gold, prompting a broader Wall Street recalibration that Goldman Sachs and HSBC have also participated in. Gold is currently trading between $4,200 and $4,800, with January’s spike above $5,500 driven by geopolitical anxiety and rate-cut optimism now having faded.
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