Gold pared gains after reaching a fresh record, as traders booked some profits after US Treasury Secretary Scott Bessent dismissed speculation that the government might revalue its bullion holdings.
When discussing plans for a sovereign wealth fund, Bessent said revaluing US gold reserves is “not what I had in mind.” That appeared to play down the idea of revaluing reserves from the $42-an-ounce price set in 1973 to current market prices, which would deliver a one-time windfall of around $750 billion for the government and thereby reduce the need to issue bonds.
“We’re seeing a bit of profit-taking, perhaps driven by Bessent’s comments. But mostly the market was looking for an excuse to book some profit following the latest run-up in prices,” said Ole Hansen, head of commodities strategy at Saxo Bank A/S. “Overall, I do not see any change in the underlying support, which potentially could limit the loss.”
Gold earlier climbed as much as 0.7% to a new all-time high of $2,954.84 an ounce, before giving up most of the advance.
The Treasury secretary also said he had no plans to visit Fort Knox — where much of the US gold reserve is kept — adding that “all the gold is there” and any senator is welcome to visit to see it. Trump has said his administration intends to ensure that the significant amount of reserves held there is accounted for and accurate.
Bullion’s fresh peak earlier Thursday was supported by a flight to safe haven assets amid geopolitical tensions, with traders looking past signals that the Federal Reserve is in no rush to cut interest rates.
There have been growing fears that Trump could abandon American support for Ukraine after Russia invaded its neighbor in 2022. The US leader on Wednesday said on social media that Volodymyr Zelenskiy had “better move fast” to reach a peace deal “or he is not going to have a country left.”
The precious metal has hit successive records this year, after climbing 27% in 2024, amid mounting concerns over Trump’s consistently disruptive trade and geopolitical agendas. Goldman Sachs Group Inc. this week raised its year-end target to $3,100 an ounce, saying that stronger-than-expected central-bank buying would be a key driver for prices.
