Gold prices could rise sharply to $5,000 an ounce as escalating geopolitical tensions and deepening policy uncertainty push investors toward traditional safe havens, according to Nigel Green, CEO of global financial advisory firm deVere Group.
The prediction follows gold’s rally to fresh all-time highs above $3,450 in Asian trading, fueled by intensifying friction between the United States and China and growing concerns over U.S. central bank independence. Investors are recalibrating in real time as two critical forces converge: strategic decoupling between the world’s largest economies and an internal battle in Washington over the direction of monetary policy.
“This is not a short-term cycle—it’s a long-term realignment”
Nigel Green commented, “The world is watching a strategic decoupling of the world’s two largest economies in real time. What began as a tariff spat is evolving into a geopolitical and economic confrontation—with implications that stretch far beyond trade. In this environment, gold is becoming the ultimate financial insurance.”
He said the notion that either side will reverse course is fading, as capital markets fracture, tariffs expand, and technology restrictions deepen. “The US and China are now competing not only economically, but ideologically. This is not a short-term cycle—it’s a long-term realignment. And it’s driving a seismic shift in portfolio strategy.”
At the same time, the U.S. faces a growing rift between former President Donald Trump and Federal Reserve Chair Jerome Powell. Trump has openly called for aggressive rate cuts to support his economic agenda, while Powell continues to signal caution. The confrontation has rattled bond markets and lifted Treasury yields as traders reassess expectations for future policy.
“This isn’t just a disagreement over timing. It’s a power struggle between fiscal force and monetary independence. Markets are reacting. And they should be,” said Nigel Green.
Investors are increasingly questioning the stability of the U.S. dollar amid these developments. While traditionally viewed as the global safe haven, the dollar is losing ground as trust in Washington’s ability to manage inflation, debt, and policy credibility erodes. “The more strained the relationship between Washington and Beijing becomes, the less confidence investors have in the dollar, and the more appealing dollar-denominated assets like gold become,” Green said.
The combination of external geopolitical risk and internal political instability is altering risk calculations across the financial system. Trump’s public criticism of Powell—and reports that his administration considered removing him—have revived fears over the politicization of monetary policy.
“When the independence of central banks is called into question, the implications for inflation, interest rates, and currency stability become unpredictable. It’s no wonder investors are seeking shelter,” Green stated.
He noted that this market response is not a speculative spike but rather a repricing of structural risks. Gold is being repositioned not merely as a hedge but as a foundational asset in institutional portfolios.
“With both Washington and Beijing engaging in massive state-driven industrial strategies and supply chain protectionism, inflationary pressures are being embedded into the new global order,” said Green. “Unlike past episodes of inflation sparked by excess demand, this one is being structurally fueled by economic nationalism.”
“The days of cheap, frictionless trade are behind us”
He added, “The days of cheap, frictionless trade are behind us. That has consequences—particularly for prices. It means higher structural inflation, weaker currencies, and a renewed focus on hard assets. Gold sits at the center of all three.”
According to deVere’s outlook, further deterioration in U.S.-China relations or any escalation in Trump’s pressure on the Fed could drive even more aggressive inflows into gold. Institutional investors are already shifting into commodities, structured hedges, and defensive allocations to navigate both macro and political risk.
“The Fed is under pressure like never before. Trump wants control. Powell wants credibility. Markets are stuck in the middle,” Green said. “This is now a defining test for how much autonomy the central bank still has—and how far a president is willing to go to drive growth on his terms.”
deVere continues to advise clients to adopt a globally diversified strategy with strong downside protection and exposure to assets like gold that historically perform well during systemic disruptions.
“Should Washington and Beijing continue to double down instead of de-escalate, we’ll see continuing significant inflows into gold,” concluded Green. “As the world becomes more fractured, investors will keep chasing safety.”