Goldman Sachs forecast gold as high as US$5,000 / oz | investingLive

Gold could soar to $5,000 an ounce if President Trump’s escalating manipulation of the Federal Reserve undermines confidence in U.S. markets, Goldman Sachs warned in a note. The bank said political pressure on the Fed threatens to erode trust in bonds, equities, and the dollar, pushing investors further toward safe-haven assets.

Gold is currently trading around $3,545, near record highs. Goldman’s head of commodities research Samantha Dart wrote that:

• “a scenario where Fed independence is damaged would likely lead to higher inflation, lower stock prices, and an erosion of the dollar’s reserve currency status. In contrast, gold is a store of value that doesn’t rely on institutional trust.”

The White House has intensified its campaign against the central bank, with Trump calling for criminal probes into Fed Chair Jerome Powell and Governor Lisa Cook, while also attempting to fire Cook. Analysts say these efforts, alongside Trump’s stated intention to appoint loyalists who favour lower interest rates, raise fresh concerns about the Fed’s autonomy.

Goldman estimated that even a modest rotation from Treasuries into gold could be enough to trigger a major rally:

• “If 1% of the privately owned U.S. Treasury market were to flow into gold, the gold price would rise to nearly $5,000 per ounce”
• the bank also outlined a “tail risk” scenario of $4,500
• reaffirmed gold as its “highest-conviction long recommendation in the commodities space.”