Gold Could Surge to $5,000 as Investors Eye Fed Credibility, Goldman Sachs Warns
New York, NY – Gold prices could skyrocket to $5,000 per ounce if concerns about the Federal Reserve’s independence escalate and investors begin to shift even a small portion of their holdings out of U.S. Treasury bonds, according to a new report from Goldman Sachs.
the investment bank’s analysts, including samantha, outlined a scenario where diminished faith in the Fed could trigger higher inflation, a decline in long-term stock and bond values, and a weakening of the U.S. dollar’s status as the world’s reserve currency. “Gold is a store of value that is not reliant on confidence in institutions,” the research note stated, positioning the precious metal as a safe haven in times of economic and political uncertainty.
Goldman Sachs modeled several potential price trajectories for gold. Their base case predicts the price reaching $4,000 per ounce by mid-2026. A more bullish scenario forecasts $4,500,while a dramatic surge to $5,000 is predicted if just 1% of the private market currently invested in U.S. Treasury bonds were to move into gold.The report comes as gold has already experienced an exceptional year,rising by over a third and hitting record highs earlier this week.This rally has been fueled by increased purchases from central banks and expectations of impending interest rate cuts by the federal Reserve. Recent actions by former President donald Trump to exert influence over the Fed, including attempts to challenge the position of Governor Lisa Cook, have also contributed to the growing unease surrounding the central bank’s autonomy.
“We believe that a 1% shift of the private market for US Treasuries into gold could drive the price to approximately $5,000 per ounce,all other factors remaining constant,” the Goldman Sachs analysts wrote.They concluded by reiterating
