The US gold reserves, particularly those stored in Fort Knox, have been under scrutiny lately. While Treasury Secretary Scott Bessent dismissed revaluing the stash to match current market conditions, an analyst believes this would be bullish for prices.
Francisco Blanch, head of commodities and derivatives research at Bank of America Securities, stated that repricing gold reserves would increase momentum for prices as it would show gold is no longer an anachronistic asset. This move would signal the precious metal’s renewed interest from central banks.
The US owns 261.6 million troy ounces of gold, valued at $42.22 per ounce in the 1970s. At current prices of around $2,950 per ounce, its value would top $750 billion. However, it remains unclear whether revaluation is feasible due to Bessent’s clarification that he didn’t mean repricing gold reserves.
President Donald Trump has expressed interest in visiting Fort Knox with Elon Musk, while Blanch warned this wouldn’t contribute to the administration’s goal of weakening the dollar or lowering energy prices. Instead, a revaluation could potentially lead to increased gold demand from central banks and investors seeking safe-haven assets.
Blanch noted that repriceing gold might be linked to Russia’s economic cooperation with the US, which could involve Russian energy exports and their impact on global oil prices. This could lead to a shift in funding for US institutions.
Source: https://fortune.com/2025/02/23/us-gold-reserves-repricing-fort-knox-trump-musk-treasury-federal-reserve