The world market price of gold has this year recorded a long series of new historical records – most recently on Wednesday at over 3,578 dollars per ounce. Much is connected to the fact that the dollar and American assets have fallen in value during the year.
The professionals at the esteemed investment bank Goldman Sachs, one of the largest financial players on Wall Street, believe that the gold price can get a new boost upwards if confidence in the Fed's independence is damaged and the dollar's status as a global reserve currency gets a blow.
They do not explicitly mention the Trump administration's ongoing attempts to fire Fed member Lisa Cook, but the analysis comes after this issue has become relevant.
"Gold has a value that is not dependent on the confidence of institutions", writes Goldman's analysts in a market comment.
They note that it is enough for one (1) percent of all managers' American government bonds to be sold to buy gold, so the gold price could rise to almost 5,000 dollars per ounce – a price increase of 43 percent from today's already historically high gold price.
