September 4, 2025
Article from Bloomberg by Jake Lloyd-Smith
Article Synopsis
Goldman Sachs says gold could climb to nearly $5,000/oz if Fed independence is undermined and even 1% of Treasury holdings shift into bullion. The bank’s baseline forecast sees gold at $4,000 by mid-2026, with tail-risk scenarios of $4,500–$5,000.
Gold has already surged over a third this year on central-bank buying, rate-cut bets, and concerns over Trump’s push to influence the Fed. Analysts warn weakened Fed credibility could fuel inflation, hit stocks and bonds, erode the dollar, and strengthen gold’s role as a trusted store of value.
