People who have investment in gold may become wealthier sooner as the price of the precious metal is predicted to rise.
The precious metal which is considered as a favorite stabilizer for the investment portfolio of major investors may hit about US$5,000 if the President of the United States, Pres. Donald Trump undermines the Federal Reserve.
TheMediaGood Newspaper gathered that the Trump’s administration might erode the independence of the world’s most important central bank.
‘Gold prices could climb to almost $5,000 an ounce if Donald Trump’s attacks on the Federal Reserve damage the US central bank’s independence’, Goldman Sachs has predicted.
This prediction have fuelled the latest flows into the metal, which is traditionally viewed as a hedge against inflation.
Financial Times adds: ‘investors are concerned that a politicised Fed would be more inclined to cut interest rates than would otherwise be the case, sending long-term inflation expectations higher and undermining Treasury prices.’