Goldman Sachs: If the Fed's credibility is damaged, gold prices may approach $5,000

Goldman Sachs Group Inc. says that if the Federal Reserve's credibility is damaged and investors swap a small portion of U.S. Treasury bonds for gold, the price of gold could rise to nearly $5,000 per ounce. Analysts including Samantha Dart said in a report: "A scenario of impaired Fed independence could lead to higher inflation, lower stock and long-term bond prices, and an erosion of the dollar's reserve currency status. Gold, by contrast, is a store of value that does not rely on institutional trust." The Goldman Sachs report outlines a range of possible outcomes for gold prices, including a baseline forecast of $4,000 per ounce by mid-2026; a so-called tail risk scenario of $4,500; and a potential price approaching $5,000 if 1% of private U.S. Treasury funds flow into gold. (Golden Ten)