Gold is showing record growth, reaching $3,549 per ounce, linked to uncertainties surrounding FED policies and global economic instability.
Gold and Its Records
Gold prices have surged more than 40% this year. Analysts warn that a weakened independence of the FED could lead investors to switch from U.S. Treasuries to gold, raising inflation risks.
Goldman Sachs' Forecasts
Goldman Sachs outlined three scenarios for gold prices, with a base case suggesting reaching $4,000 by mid-2026. An extreme case sees prices hitting $4,500, and if just 1% of U.S. Treasury assets is allocated to gold, prices could approach $5,000.
Market Influences and Reasons for Gold's Rise
Trump's return to the White House has introduced new uncertainties in markets. His criticism of the FED has diminished investor confidence. Additionally, weak job data has fueled expectations for rate cuts, making gold a more attractive asset.
With rising geopolitical risks and economic uncertainties, gold remains a reliable safe haven. As interest from both central banks and retail investors increases, its value is likely to continue rising.
