Gold breaks records. Analysts warn against the risk scenario

Goldman Sachs analysts presented the latest forecasts regarding the gold market. According to them, in the event of weakening the independence of the federal reserve, the prices of the ore can increase rapidly – even to almost 5 thousand hole. for the ounce.

What will happen to gold prices?

The report cited by Bloomberg emphasized that the script of the loss of Fed autonomy could lead to higher inflation, deposits on the stock exchange, reduction of bond prices and erosion of the dollar position as the world reserve currency. Unlike the dollar, Gold serves as a value warehouse that does not require confidence in the institution – analysts, including Samantha Dart.

Goldman Sachs presented three possible variants of the development of the situation:

• base forecast – increase to 4,000 hole. for the ounce until mid -2026.,

• Extreme risk scenario – level 4.5 thousand hole.,

• Extreme scenario – almost 5,000 hole.if 1 percent Privately owned US bonds would be transferred to gold.

Records on the market

The ore market is already recording records. Since the beginning of the year, the price of gold increased by more than a third, beating another Maks this week. Increases are driven by purchases of central banks and the expectations that the Fed will soon start a series of interest rate reductions. An additional impulse is the actions of President Donald Trump, who tries to increase control over the Fed, including by striving to dismiss a member of the Governors’ Council, Lisy Cook.

Although the Goldman Sachs report did not focus in detail on current events around the Fed, global fears about the future of the American Central Bank are growing. President of the European Central Bank Christine Lagarde warned that The loss of independence of the Fed would be a “serious threat” to the whole world.