Gold Prices Could Surge Amid Concerns Over Federal Reserve Independence

According to Odaily, recent statements by U.S. President Donald Trump regarding Federal Reserve Chairman Jerome Powell have raised concerns about the central bank's independence. Trump has suggested that Powell could be dismissed if interest rates are not lowered. In response, analysts at Goldman Sachs have warned that any loss of independence by the Federal Reserve could lead to significant market volatility. Goldman Sachs predicts that in a scenario where concerns about the Federal Reserve's autonomy or changes in U.S. reserve policies increase, the demand for central bank gold could rise to 110 tons per month. Additionally, a U.S. recession could cause ETF holdings to rebound to levels seen during the pandemic, and speculative positions might reach historical highs. Under these conditions, gold prices could approach $4,500 per ounce by the end of 2025.