Will Powell Be the Push Gold Needs To Hit $5,000?

Gold has always played a strange game of tug-of-war with the Fed. 

Think back to the 1970s, when inflation was raging, rates were climbing, and gold was shooting through the roof. But investors didn’t buy gold because it paid, they sought it out as everything else was losing purchasing power. 

Fast forward to today, and we might be entering a similar moment when gold doesn’t just shine — it could blaze.

Yesterday,  the Federal Reserve did the least shocking thing it could have done and cut interest rates by 25 basis points — its first cut of the year. Let’s be fair here, everyone knew it was coming, and the market had been baking-in this decision for weeks. 

So when Powell took to the podium and told us all something we already knew, the market reaction was tepid at best. 

What we did learn, however, was that the Fed may have just set up gold for a rockstar finish to the year by signaling that another two more such cuts could come before we ring in the new year. 

That would be more than a gesture, it would build the necessary scaffolding to support the next price surge for gold prices. In fact, moments after the decision was announced, spot prices of gold spiked to a new all-time record of $3,707.40 per ounce before the profit-taking kicked in. 

If this isn’t just another Fed move — it’s a pivot. 

Look, Powell is saying the quiet part outloud… that inflation is still a concern, yes, but growth is slowing and labor markets are weakening. That mix tilts the risk balance for investors toward what looks like “no yield on assets I hope hold value” rather than “little yield on assets I expect to inflate away.” 

And make no mistake, gold thrives in the former. 

You see, these rate cuts reduce the opportunity cost of holding gold (since bonds/yields are less attractive). Meanwhile, the dollar weakens, which adds fuel: a cheaper dollar makes gold more attractive globally. 

Given all that, the question isn’t whether gold can keep rising. We KNOW it can. That thought itching and scratching its way to the surface of every gold bug’s mind is whether we’ll see this sucker break $5,000 per ounce. 

So what would it take? What are the catalysts that would drive gold to such heights?

Well, let’s lay it all out, shall we?

Every major rally in gold’s history has been driven by the same cocktail: loose monetary policy, stubborn inflation, and a public that slowly realizes its cash is rotting in the bank. 

The Fed just gave us the first ingredient by cutting rates, and sticky inflation that seems to be lingering around is giving us the second. 

Normally, that’s enough to keep the market upbeat on gold moving higher. However, the rapid loss of faith in fiat is building by the day as central banks themselves hoard bullion at the fastest clip in modern history. 

When the very institutions tasked with defending the paper dollar are piling into gold, you don’t need a crystal ball to see where confidence is headed.

This doesn’t even toss in the rest of the geopolitical uncertainty that is starting to pile on — wars, trade disputes, sanctions, fractured supply chains. 

Now that we have the fuel, all it would take is a spark. At least, that’s how Goldman Sachs sees things. For them, the end of Fed independence would open the door for higher inflation, lower stock and long-dated bond prices, and further erosion of the dollar’s reserve-currency status. 

So far, gold prices have jumped 40% in 2025. 

Is $5,000/oz possible? Yes — though not guaranteed, and probably not without that damaging Goldman scenario. It would require a confluence of events, more cuts than currently priced, weak economic data continuing, inflation that just won’t die off, and continued demand from central banks. 

If the Fed signals a more aggressive cut path (not just two more, but maybe three or four), or economic indicators deteriorate (say unemployment rises or growth slows dramatically), that could push gold well past $4,000/oz and we would be well on our way to the $5,000/oz prophecy. 

And here is where digital gold, and in particular NatGold, becomes interesting during the current gold climate.

My veteran readers already know full well the limitations that come with traditional gold investments such as bars, coins, and ETFs, vehicles which can be heavy, slow, sometimes opaque in ownership. 

Storing, securing, and insuring physical gold adds cost and friction. Liquidity can suffer. Meanwhile, digital gold investments like NatGold promise the same exposure to gold price movements (or very close), but with the benefits of speed, divisibility, lower storage/insurance hassle, easier transfer, and perhaps greater transparency. 

If I were writing a playbook, here’s what I’d watch next: inflation data (CPI, PCE), Fed speeches & the dot plot, employment data, dollar strength/weakness, central bank reserve reports, and any shocks (geopolitical, debt-ceiling, etc.). 

If these point toward more easing and continued macro stress, then the stage is set for gold to test $4,000/oz, then $4,500/oz, perhaps even $5,000/oz next year.

But like I said, we’re not there… not yet. 

And if yesterday’s Fed announcement turns out to be the pivot point for Powell and company, the door is wide open for gold to set new high water marks. 

If you agree that this is a rare moment, it makes sense to take just a few moments out of your day and check out the full details behind NatGold’s opportunity firsthand — before the next price spike occurs.