Goldman Sachs forecasts gold could reach $5,000 if Trump’s attempts to undermine Federal Reserve independence triggers an investor flight from bonds, stocks, and the dollar. Separately, labor data remains mixed or weak, and Wall Street thinks a September Fed rate cut is virtually locked in. Global markets are mostly positive in early trading.

Gold prices hit a five-week high on Thursday, supported by a softer dollar and safe-haven flows, due to ongoing concerns over the Federal Reserve's independence.

If just 1% of private Treasury holdings get reallocated into gold, the precious metal could hit $5,000, the firm says.