US Gold Reserves Worth Nearly $1 Trillion In Value After Gold Prices Hit Another Record High

U.S. gold reserves reportedly hit nearly $1 trillion in value after gold prices hit a record high in early morning trade on Monday. 

Gold prices hit an intra-day high of $3,831.34 an ounce in early morning trade, according to TradingView data. On Stocktwits, retail sentiment around the gold improved to ‘bullish’ from ‘neutral’ over the day. Sentiment around SPDR Gold Shares ETF (GLD) also improved to ‘bullish’ from the ‘neutral’ zone.

According to a Bloomberg report, this puts the government’s reserves – the value of which is based on the $42.22 per ounce price set by Congress in 1973 – at just over $11 billion. Adjusting the reserves’ value to today’s market prices would amount to nearly $990 billion. The report noted that the amount would cover about half of the $1.973 trillion total US budget gap for the fiscal year through August. 

Earlier this year, Treasury Secretary Scott Bessent sparked speculation that the U.S. might mark its gold to market, potentially unlocking hundreds of billions in value. However, he later dismissed the suggestion. Should the U.S. go down the route, it would not be the first country to do so. Germany, Italy, and South Africa have all decided to revalue their reserves in recent decades.

The U.S. gold hoard totals about 261.5 million ounces, according to Treasury data. Unlike many other countries, the Treasury owns the metal directly, while the Federal Reserve maintains certificates representing these holdings and credits dollars to the government in return.

Read also: EA Stock Jumps Pre-Market After Announcing $55 Billion Acquisition By PIF, Silver Lake, Affinity Partners

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