BofA and HSBC Cut Gold Forecasts Amid Rate Hike Pressures
Key Questions
Why did BofA retract its bullish $6000 gold price target?
BofA cited a 70% probability of a Fed rate hike by September and persistent dollar strength as reasons for retracting the target on June 24.
What change did HSBC make to its gold forecasts on July 8?
HSBC lowered its 2026-27 gold price forecasts due to hawkish Fed signals and rate hike pressures.
How does the recent price action align with the bearish forecasts from major banks?
The pullback from $4186 to $4077 and subsequent bounce to $4130 is consistent with the bearish macro thesis, even as central bank buying provides some floor.
BofA retracted its bullish $6,000 gold target on June 24, citing 70% probability of rate hike by September and persistent dollar strength. HSBC followed on July 8, lowering its 2026-27 gold price forecasts, reinforcing the dominant bearish macro headwind. The recent pullback from $4186 to $4077 and bounce to $4130 aligns with the bearish thesis, though the bounce shows short-term resilience. Structural CB buying remains a floor but does not change near-term direction.