Gold Pares Gain as Bessent Plays Down Revaluing US Reserves
Gold pared gains from a fresh record high, as 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.
Bloomberg last week reported that the idea was not under serious consideration among US President Donald Trump’s top economic advisers, after comments made by Bessent sparked speculation amidst some quarters of the gold market.
Gold earlier climbed as much as 0.7% to $2,954.84 an ounce, before paring some of the advance.
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.
Spot gold was up 0.2% at $2,937.94 an ounce as of 1:46 p.m. in London. The Bloomberg Dollar Spot Index was down 0.3%. Silver, palladium and platinum climbed.
Source: Bloomberg
