Gold Could Surge 40% Amid Fed Independence Concerns, Goldman Warns

Goldman Sachs predicts Gold prices may approach $5,000 per ounce by mid-2026 if political pressure erodes Federal Reserve independence. The bank's analysis suggests a 1% shift from U.S. Treasuries to gold could drive this rally, positioning the metal as their top commodities recommendation.

Market participants increasingly view gold as a hedge against potential dollar weakness and inflation risks. Recent attempts to influence Fed policy decisions have raised concerns about central bank autonomy, with historical precedents suggesting such scenarios often benefit hard assets.

The precious metal's appeal grows as institutional investors reassess portfolio allocations. Goldman's projection implies nearly 40% upside from current levels, with the analysis assuming constant other market factors—a scenario that appears increasingly plausible amid geopolitical and monetary policy uncertainties.