Gold Could Skyrocket Nearly 40% on Crumbling Fed Independence, Says Goldman

Goldman Sachs predicts gold could surge nearly 40% as Federal Reserve independence fractures—just what happens when monetary policy gets political.

The Perfect Storm

Gold's poised for a massive breakout as institutional confidence in central bank autonomy erodes. When the Fed's credibility wobbles, investors flock to the one asset that never needs a bailout.

Institutional Flight

Major funds are already rotating into hard assets—gold's traditional hedge against monetary incompetence. Because nothing says 'safe haven' like a 5,000-year-old store of value during modern policy failures.

The 40% Catalyst

That projected surge isn't fantasy—it's what happens when smart money anticipates dollar debasement. Gold doesn't pay yield, but it also doesn't print trillions out of thin air.

Because sometimes the oldest financial insurance still beats algorithmic stablecoins.

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“We estimate that if 1% of the privately owned US Treasury market were to flow into gold, the gold price WOULD rise to nearly $5,000 an ounce, assuming everything else constant,” analysts at the bank said. “As a result, gold remains our highest-conviction long recommendation in the commodities space.”

Gold Gains Appeal as Fed Independence Faces Pressure

Gold is viewed as a safe-haven asset, meaning that investors flock to the precious metal during times of economic uncertainty. A lack of independence at the Fed could risk disruptions to the economic system and the confidence in U.S. debt.

President TRUMP has pressured the Fed and Chair Jerome Powell to slash interest rates and has also attempted to fire Fed Governor Lisa Cook. Experts warn that these moves could mark the starting point of deteriorating Fed independence.