Goldman Sachs predicts a possible increase in gold to $5,000 per ounce

Disagreements between Donald Trump and the Federal Reserve have increased turbulence in the stock and debt markets, but gold has only benefited from this, reaffirming its status as a defensive asset, Goldman Sachs analysts said.

Last week, the price of gold exceeded $3,600 per ounce for the first time, setting a new historical high. Since the beginning of the year, the metal has risen in price by 36%, three times the return of the S&P 500 index over the same period.

Experts believe that the rally is not over yet: quotes may rise by about 40% and reach the level of $5,000 per ounce. According to the bank, the key factor will be Trump's pressure on the Fed, which can undermine confidence in the American financial system.

Goldman's scenario assumes that a possible intervention in monetary policy will cause an outflow of capital from the US Treasury bond market. If at least 1% of this market is redistributed into gold, the price of the metal, according to the bank's estimates, will reach $5,000 per ounce.