Could Fort Knox revaluation spark a global gold market boom?

With calls for an independent audit and central banks ramping up purchases, market observers are keeping a close eye on the precious metal’s movements

 

The potential revaluation of US gold reserves, particularly those stored at Fort Knox in Kentucky, has sparked considerable speculation, with some analysts predicting a surge in the price of the precious metal. 

 

These discussions have been fuelled by President Donald Trump’s announcement of plans to inspect the Fort Knox stockpile to verify its status. This move comes amid rumours and conspiracy theories questioning the integrity of the stash, despite Treasury Secretary Scott Bessent insisting that “all the gold is present and accounted for”. Bessent has also emphasised that regular audits confirm the reserve’s integrity. 

 

The debate around revaluation centres on the discrepancy between the book value of US gold reserves and current market prices. As of February 2025, the US Treasury recorded its gold holdings at a statutory rate of US$42.22 per troy ounce, a valuation unchanged since 1973. In contrast, the market price of gold has gone past $2,900 per ounce.

 

According to the US Mint, the current gold holdings at the US Bullion Depository at Fort Knox are 147.3 million troy ounces or about 4,579 tonnes.

  



 

Revaluing the gold reserves to reflect current market prices could significantly increase the book value of the US Treasury’s holdings, potentially adding hundreds of billions of dollars to the government’s balance sheet. While this would primarily be an accounting adjustment, analysts say it could enhance market confidence in gold as a valuable asset.

 

Francisco Blanch, head of commodities research at Bank of America Securities, noted that such a revaluation would underscore gold’s relevance, potentially boosting investment and driving prices higher. 

 

The price of gold has risen substantially in recent years, doubling in value since the onset of the Covid-19 pandemic.

 

Geopolitical tensions, such as the Russia-Ukraine war and subsequent international sanctions, have further accelerated this trend, with central banks considering gold a safe-haven asset. This shift has led to a surge in gold purchases by central banks worldwide, including huge acquisitions by countries like Poland and China. 

  



 

In Thailand, as of Tuesday, gold prices have also seen adjustments. Gold ornaments with 96.5% purity are being bought at 45,904.48 baht per baht weight and sold at 47,350 baht. Gold bars are priced at 46,750 baht for buying and 46,850 baht for selling.

 

The confluence of factors, including potential revaluation, increased central bank buying, supply concerns and broader macroeconomic trends, suggests that gold will continue to be a closely watched asset in the coming months.

(2025/02/25-00:00)