Société Générale’s Bold Call: Gold’s Run to $5K Will Crush the Dollar and Bonds
Gold's $5,000 target isn't a prediction—it's a declaration of war on traditional finance.
The Dollar's Looming Reckoning
Société Générale's forecast paints a brutal picture for the greenback. A surge to $5,000 per ounce for gold doesn't just signal inflation; it screams a systemic loss of confidence. This isn't a gradual decline—it's a bypass of the entire fiat architecture, where hard assets become the only ledger that matters.
Bonds: The Collateral Damage
Fixed income gets caught in the crossfire. As gold rallies, the traditional 'safe haven' status of sovereign debt evaporates. Why lock in yields when real value is hemorrhaging? The move crushes bond prices, forcing a painful portfolio rethink for institutions still praying for a return to normalcy.
The message is clear: the old guard of dollar supremacy and bond market stability is under direct assault. It's a cynical reminder that in finance, the safest bet is often on the failure of other people's assets. Gold's run isn't just a trade; it's a verdict.
Société Générale: 2026 Bad for USD, Bullish for Gold
Per a recent Kitco article, Soc Gen analysts continue to maintain their bullish stance on gold. Speaking about their gold prediction in depth, the analysts shared how they are maintaining a 10% portfolio exposure towards gold and are reducing its dependence on US dollar-based assets.
The analysts have issued a new $5K call for gold, adding how diversification of investors towards the asset might lead the charge, helping gold rise steadily on the radar.
US Dollar Declined To Continue In 2026
Despite multiple attempts to stabilize the US economy, the US dollar continues to slip past, exploring lower price ranges in the meantime. The USD is projected to reach further lows, with the DXY index exploring the 94 to 97 mark before rebounding.
NEW: Lyn Alden just posted the most brutal chart in macro.
230 years of data showing the buying power of the US dollar collapsing to almost zero after the Federal Reserve, the Gold Reserve Act, and the Nixon Shock.
Nothing stops this train. pic.twitter.com/WOYoEe3BFA
.noted Morgan Stanley.
