Goldman Sachs: If the credibility of the Federal Reserve is damaged, the price of gold may approach $5000.

Goldman Sachs group said that if the credibility of the Federal Reserve is damaged, and investors convert a small portion of US treasuries to gold, then the price of gold could rise to nearly $5000 per ounce. Goldman analysts, including Samantha Dart, said: "Damage to the independence of the Federal Reserve could lead to increased inflation, a decline in stock and long-term bond prices, and a weakening of the US dollar's reserve currency status. In contrast, gold is a value store that does not rely on institutional trust." Goldman's report outlined a series of possible outcomes for the price of gold, with the base prediction being a surge to $4000 per ounce by mid-2026; the so-called tail risk scenario is $4500; if only 1% of privately held US treasuries are converted to gold, it is expected that the price of gold will reach nearly $5000 per ounce. Gold is one of the strongest-performing major commodities this year, with a price increase of over one-third, and reaching a new high of over $3500 per ounce this week. The rise in gold prices is attributed to Beijing's Dynamic Power increasing its holdings and market speculation that the Federal Reserve will soon begin to cut interest rates. Recently, with US President Donald Trump taking actions to strengthen control over the Federal Reserve, including pushing for the dismissal of Fed Governor Lisa Cook, gold prices have received further support. Analysts said: "We estimate that if 1% of privately held US treasuries are converted to gold, assuming all other factors remain constant, the price of gold will rise to nearly $5000 per ounce. Therefore, in the commodity sector, gold remains our most bullish asset."