Goldman Sachs "If Fed independence is undermined, gold prices will surge…reach 4500 dollars within the year"

Global investment bank (IB) Goldman Sachs said gold prices would surge if the U.S. Federal Reserve's (Fed) independence is undermined.

On the 3rd (local time), according to Bloomberg, Goldman Sachs said in a report that "if the Fed's independence is undermined, the dollar's status as the key currency is likely to weaken," and "conversely, gold is a store of value (SoV) that does not rely on institutional trust." Goldman Sachs said, "If 1% of privately held U.S. Treasuries flows into gold, the gold price would rise to 5000 dollars per ounce," adding that "gold is the top long (buy) recommended asset in the commodities sector."

Specifically, Goldman Sachs said gold prices could exceed 4500 dollars within the year if President Donald Trump's 'shaking of the Fed' continues and the central bank's independence weakens. However, Goldman Sachs said that if the Fed's independence is not greatly undermined, gold prices are expected to rise to 4000 dollars per ounce by around mid-next year.

Meanwhile, gold prices have repeatedly hit record highs this week. Gold futures prices briefly exceeded 3600 dollars for the first time ever during trading on the 2nd (local time).