Gold likely to reach $5,000 per ounce: Goldman

September 04, 2025 (MLN):  Gold prices could rally to nearly $5,000 an ounce if the Federal Reserve's independence were compromised, according to Goldman Sachs Group Inc.

A scenario in which the Fed’s independence is undermined would likely result in higher inflation, lower stock and long-dated bond prices, and a potential erosion of the dollar’s status as the world’s reserve currency, as Bloomberg reported.

Goldman Sachs estimates that if just 1% of the privately held U.S treasury market were redirected into gold, the price of bullion could climb to almost $5,000 an ounce, assuming all other factors remain constant.

This development came amid growing political pressure on the U.S. central bank, as President Donald Trump sought to remove Governor Lisa Cook and sharply criticized Federal Reserve Chair Jerome Powell for overspending on the renovation of the Fed’s headquarters and acting too slowly on interest rate cut

Meanwhile, concerns from global leaders have intensified, with European Central Bank President Christine Lagarde warning that a loss of Federal Reserve independence would pose a “serious danger” to the world.

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