Gold could soar to $5,000 if Trump undermines Fed independence, warns Goldman Sachs

Gold could soar to $5,000 if Trump undermines Fed independence, warns Goldman Sachs
Gold and silver have long been regarded as safe-haven assets, offering protection against inflation and economic instability.

Gold prices may rise to approximately $ 5,000 an ounce if Donald Trump’s ongoing attacks on the US Federal Reserve weakens the independence of the central bank, according to expectations from Goldman Sachs.

The precious metal is already trading near record levels, with instant prices $ 3545.39 an ounce, an increase of more than 35 percent this year, as investors and banks accumulate to hedge against inflation.

Goldman has warned that the increasing concerns about political intervention in decision -making at the Federal Reserve can accelerate the transformation, which leads to the removal of assets from the dollar into safe havens such as gold.

“If 1 per cent of the US Treasury owned the private sector will flow to gold, then the price of gold will rise to approximately $ 5,000 per ounces,” said Dan Strewinh, head of Global Commodity Research at Goldman Sachs, in the comments reported by the Financial Times.

Trump has repeatedly criticized the federal reserve, calling for deeper discounts in interest rates and skepticism about its independence. Analysts say any step that erodes confidence in the central bank’s ability to manage inflation can provoke rush to solid assets.

Since gold is already one of the best performance assets in 2025, Goldman’s expectations emphasize how sensitive markets remain towards American political risks, and how fast feelings can push alloys towards their highest levels.


Amy Engham

Amy is a newly qualified journalist in business journalism in business with responsibility for news content for what is now the largest printed source and online crossing in the United Kingdom.

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