“The script in which the independence of the Fed would be violated would probably lead to higher inflation, a decrease in share prices and long -term bonds, as well as to erosion of dollar status as a reserve currency,” wrote analysts, including Samantha Dart, in a note cited by Goldman Sachs Group Inc.
“In contrast to this, gold is a storage of value that is not based on trust in the institution,” they added, cited by Bloomberg.
The bank presented various possible scenarios:
- base forecast assuming an increase to 4,000 hole. for the ounce until mid -2026.,
- so -called extreme risk scenario at the level 4.5 thousand hole.,
- and almost 5,000 hole.if only 1 percent Privately owned American tax bonds would be transferred to gold.
Records on the ore market
Gold is one of the best -doing raw materials this year – it has already increased by over a third, breaking the record this week. Growth is driven by purchases of central banks and the expectations that the Fed will soon begin to reduce interest rates, writes Bloomberg. The actions of President Donald Trump have recently become an additional support, who is trying to take over more control over the Fed, including a member of the Governors' Council, Lisy Cook.
WARNINGS FROM EUROPE
In the note “Diversify Into Commodities, Especily Gold” Goldman Sachs does not divorce the latest events in the Fed or the criticism of Central Bank's policy by Trump.
However, as Bloomberg writes, the growing tensions around the position of federal reserve are increasingly concerned about the concerns of global institutions. President of the European Central Bank Christine Lagarde warned that The loss of independence of the Fed would be a “serious threat” to the world.
