"Goldman Sachs": Gold Prices May Reach $5000 per Ounce

SadaNews - Goldman Sachs has stated that gold prices could soar to nearly $5000 per ounce if the credibility of the Federal Reserve is damaged, and investors decide to shift only a small portion of their holdings in U.S. Treasury bonds into the yellow metal.

The bank's analysts, including Samantha Dart, added in a research note: "A scenario that undermines the Fed's independence is likely to lead to higher inflation, a decline in stock and long-term bond prices, and a decrease in the dollar's status as a global reserve currency." They continued: "In contrast, gold is a store of value that does not depend on trust in institutions."

The note presented several potential scenarios for the trajectory of gold prices, with a base case expecting the ounce to reach $4000 by mid-2026, a second scenario predicting the price will reach $4500, and another estimating the price could reach around $5000 if only 1% of the private market for U.S. Treasury bonds shifts to gold.

Gold has shown exceptional performance this year, surging by more than a third and hitting a record level earlier in the week, supported by central bank purchases and expectations of an imminent cut in U.S. interest rates. It has also received additional support recently following actions by President Donald Trump to exert control over the Fed, including attempts to oust Governor Lisa Cook.

The analysts at Goldman stated: "We estimate that if 1% of the private market for U.S. Treasury bonds were to shift to gold, the price would rise to around $5000 per ounce, assuming other factors remain constant," adding: "Therefore, gold remains our top recommendation for purchase in the commodities sector."