Repricing US gold reserves would be bullish for the market, signaling the precious metal is not a ‘barbarous relic,’ analyst says.

Revaluing US gold reserves to match current market conditions would add more momentum to prices as it would signal the precious metal isn’t an anachronistic asset, according to a Wall Street analyst.

The Fed doesn’t own gold anymore after transferring it to the Treasury Department under the Gold Reserve Act of 1934. In exchange, the Fed received gold certificates.

The US owns 261.6 million troy ounces of gold, valued at a 1970s-era rate of $42.22 an ounce, producing a book value of $11 billion. At gold’s current spot price of about $2,950 per ounce, however, the value would top $750 billion.

Treasury Secretary Scott Bessent set off speculation earlier this month that a revaluation was possible when he said, “We’re going to monetize the asset side of the U.S. balance sheet for the American people.” He later clarified that he didn’t mean repricing gold reserves.

Still, America’s stockpile of gold continues to come under extra scrutiny from elsewhere. On Saturday, President Donald Trump reiterated his intention to visit Fort Knox with Elon Musk to ensure that its gold is still being held there.

BofA’s Blanch pointed out that repricing gold would not contribute to the Trump administration’s top priorities of weakening the dollar, lowering energy prices to bring inflation down, and inducing Fed rate cuts.

But Secretary of State Marco Rubio signaled last week the potential for US-Russian economic cooperation, which Blanch thinks would likely involve Russian energy exports that could lower prices.

Source: FORTUNE