U.S. Treasury’s Gold Reserves Soar Past USD1T
(MENAFN) The value of the US Treasury's gold reserves surged past $1 trillion on Monday, marking a historic peak as gold prices reached a fresh all-time high.
Gold shot up to $3,831.33 per ounce on Monday, an increase of 45% this year, pushing the US Treasury's vast gold holdings to this new milestone. However, its official valuation remains modest, calculated at just over $11 billion based on a 1973 price of $42.22 per ounce, as reported by media.
The ongoing rise in gold prices has been driven by various factors, including global geopolitical tensions, concerns about the broader economic outlook, strong demand from central banks, and expectations surrounding the Federal Reserve’s interest rate cuts.
Last week, under pressure from President Donald Trump, the Federal Reserve reduced its policy rate by 25 basis points, with more cuts anticipated at upcoming meetings in October and December. The Fed’s decision was influenced by weak inflation data, growing unemployment numbers, and calls from Trump to lower rates.
According to Treasury data, the US government currently holds around 261.5 million ounces of gold.
Unlike most countries, where central banks directly own the gold, the US government retains ownership. The Federal Reserve, instead of physically holding the gold, possesses gold certificates that represent the Treasury’s reserves and provides the government with cash in exchange.
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