BNP Paribas: Gold Could Rise to $5,000 as Fed Pressure Weakens Dollar

BNP Paribas forecasts that gold prices could reach $5,000 as pressure from U.S. President Donald Trump on the Federal Reserve weakens the dollar. The bank's analysts state that Trump's interventions in the Fed's independence are eroding the dollar's credibility as a global reserve currency, making gold an attractive safe haven. In this scenario, there is strong potential for gold to reach $5,000 per ounce. According to BNP Paribas' report, the Trump administration's political pressure on the Fed raises concerns about the independence of monetary policy. This leads to a depreciation of the dollar and a shift by investors toward alternative assets. Analysts emphasize that a weaker dollar is one of the key factors supporting gold prices. Additionally, geopolitical risks and global economic uncertainties are strengthening demand for gold. The report does not provide a specific timeframe for gold to reach the $5,000 target but indicates that this level is possible in the long term. BNP Paribas notes that current economic conditions and political risks are favorable for gold, but investors should be cautious about volatility. The bank states that gold retains its importance as a diversification tool in portfolios, and this role will become even more pronounced if the dollar weakens. On the other hand, some market analysts believe that gold reaching $5,000 would only occur in the event of a severe economic crisis or a challenge to the dollar's reserve status. BNP Paribas' ambitious target has sparked varied interpretations in the markets, and investors are expected to closely monitor the Fed's monetary policy decisions and movements in the dollar index. This is not investment advice.