June 22, 2026
The price of gold is under noticeable pressure following the U.S. Federal Reserve’s most recent interest rate meeting. Although the Federal Reserve left its benchmark interest rate unchanged at a range of 3.50 to 3.75 percent, Fed Chairman Kevin Warsh signaled a possible rate hike by the end of the year. This hawkish stance and the clear focus on price stability are driving bond yields higher, which increases the opportunity cost of the interest-free precious metal. As a result, market expectations have grown that the key support level of $4,000 per ounce will be tested in the near future.
Weak Gold Price: Société Générale Makes Massive Increase
While many market participants are reacting nervously to this development, Société Générale views the current pullback as an attractive buying opportunity. The major French bank is significantly increasing the gold allocation in its multi-asset portfolio for the third quarter from 7 to 10 percent. Accompanied by a broader increase in industrial metals and energy, the bank’s total commodity exposure climbs to a historic record of 20 percent. The strategists are already forecasting a noticeable recovery for the fourth quarter and expect the precious metal to reach the $5,000 mark by the second quarter of 2027.
Why Structural Risks Support the Gold Price in the Long Term
The bank’s confidence stems primarily from doubts about the continued stringency of U.S. monetary policy. The experts assume that the Fed will ultimately not implement the interest rate hikes it has signaled. Instead, the central bank could adapt to an environment of higher growth and persistent inflation. However, should central banks actually fall behind in the fight against inflation, a robust hedge against inflation—such as gold—will become indispensable.
Furthermore, analysts note that international central banks are likely to continue acting as active buyers in the wake of global de-dollarization, offsetting any potential reluctance on the part of private investors. In light of spiraling government debt and increasing geopolitical fragmentation, Société Générale is fully committed to real assets. Consequently, the bank is no longer holding any liquidity in the current quarter but is instead investing more heavily in stocks and inflation-protected bonds in parallel with its gold buildup.
Source：https://goldinvest.de/en/socgen-goes-all-in-gold-back-at-usd5-000-by-the-end-of-the-year
