Goldman Sachs: If the Fed Becomes a Political Tool, Gold Could Rise to $4,500 per Ounce

On April 18, Goldman Sachs analysts warned that if the Federal Reserve loses its independence, the market will face extreme volatility, in light of recent dangerous signals from Trump towards Fed Chair Powell, threatening to fire him if interest rates are not cut.

Goldman Sachs predicts that in an extreme tail-risk scenario, if the market's focus on the Fed's subordination or changes in US reserve policy increases, leading to central bank demand rising steadily to 110 tonnes/month, and a US recession causes ETF holdings to rebound to pandemic levels, with speculative positions reaching the top of historical ranges, gold prices may approach $4,500 per ounce by the end of 2025. (Wall Street Insights)