Wells Fargo Lowers Its 2027 Gold Price Target Amid Rising Rates and Dollar Strength
Gold has seen strong performance due to central bank purchases, retail investor interest, and geopolitical uncertainty. However, the Federal Reserve's continued rate hikes and a stronger U.S. dollar are challenging gold’s appeal as an investment with no yield or dividends. Wells Fargo Investment Institute recently adjusted its 2027 year-end price target for gold from $5,400 to $5,600 per troy ounce down to between $5,200 and $5,400. The bank cited the Fed’s rate trajectory and dollar strength as key factors behind this revision. A stronger dollar makes gold more expensive in other currencies, potentially reducing demand from major buyers like India, China, and Turkey. Despite lowering its target, Wells Fargo remains bullish on long-term gold prices due to continued central bank buying and structural shifts away from the U.S. dollar. The firm also noted that geopolitical tensions and inflation concerns continue to support safe-haven demand for gold.
Tickers: $WFC
Topics: commodities Fed policy gold interest rates