Will Trump revalue US Treasury’s 8,100 tonnes of gold?

Gold prices have climbed to fresh record highs during recent years of geopolitical upheaval, as investors have embraced the ‘safe haven’ asset and central bank purchases have surged.

But the market for the precious metal could be on the precipice of its biggest revolution in more than half a century, with Donald Trump reportedly considering a revaluation of his country’s 8,100 tonnes of gold bullion.

While most countries value their gold holdings at market prices, the valuation of US holdings has been pegged at $42.22 an ounce since 1973 – two years after then-President Richard Nixon took the dollar off the gold standard.

Gold is currently trading at a whopping $3,027.47/oz after adding almost 40 per cent over the last year.

US Treasury secretary Scott Bessent said earlier this month that the US President plans to ‘monetise the asset side of the US balance sheet’, while commentators have suggested a revaluation of the country’s gold holdings could be used to make a dent in its $36trillion national debt.

While Bessent has dismissed the idea, gold and silver fund manager at Jupiter Asset Management, Ned Naylor-Leyland, wrote in a note that a ‘revaluation is within the realm of possibility and would have significant implications for financial markets’.

He added: ‘For one thing, it would return gold to what we believe is its rightful position in the global financial system – that of the principal reserve financial asset. It might also force investors to reappraise their views on the nature of risk-free assets.’

Gold bars are stored at Fort Knox, Kentucky,

If the US were to mark to market its gold reserves, they would be worth nearly $800billion versus around $11billion currently, according to Jupiter AM.

Naylor-Leyland said: ‘We are not political experts and recognise the need to tread carefully around predictions about what President Trump might or might not do. Nevertheless, as gold investors, this is one of the most interesting periods that we can remember.’

Gold hit a fresh all-time high of $3057.31/oz earlier this month, but many forecasters expect prices to continue pushing higher this year.

Goldman Sachs last month forecast gold soaring as high as $3,300 in 2025, with a base case of $3,100.

Lina Thomas, an analyst at the bank, wrote: ‘The increased forecast is underpinned by higher-than-expected demand for gold from central banks, which have been increasing their reserves of the commodity since the freezing of Russian central bank assets in 2022, following Russia’s invasion of Ukraine.

‘As well as stronger central bank demand, Goldman Sachs Research anticipates a boost to the gold price from increased purchases of gold ETFs as declining interest rates make gold a more attractive investment.

‘Continued uncertainty — whether it’s about tariffs, geopolitical risk, or fears about high government borrowing — could also push speculators to increase their long positions in gold.’

Gold prices have skyrocketed in recent times