Amundi Predicts Fed Rate Cuts Delayed Until 2027, Sets Gold Target at $5,500

European asset management giant Amundi dismissed near-term Fed easing expectations and projected gold will reach $5,500 within 12 months, despite current prices hovering near $4,300. Chief Investment Officer John O'Toole told First Financial that the Fed's next policy shift will be rate cuts in 2027, contradicting market pricing for 2-3 additional hikes following stronger-than-expected May non-farm payrolls and comments from former Fed Chair Yellen. O'Toole argued the Fed's dual mandate framework provides greater flexibility than the ECB's single inflation target. He expects the ECB to raise rates twice more, while the Fed holds steady until economic slowdown and inflation retreat trigger cuts in 2027. Despite gold retreating from recent highs, Amundi maintains its $5,500 forecast, citing currency debasement, fiscal deficits, and elevated debt levels as structural tailwinds for the safe-haven asset. On technology valuations, O'Toole rejected bubble concerns following recent corrections in U.S., Hong Kong, and China tech stocks. He called current volatility "valuation digestion," noting SpaceX's 4.2% IPO float poses limited secondary market impact. Amundi is reducing exposure to concentrated tech leaders while increasing allocations to equal-weight indices and European/Latin American markets. The firm maintains a long-term bullish stance on China, citing innovation momentum and structural growth potential despite property sector challenges.