Gold Breaks $3,100: Trump’s Return Fuels Rise in Market Prices

In a recent issue, the Financial Times labeled gold as “Trump’s top asset.” As markets braced for the return of the former president, many expected a variety of reactions – a stronger dollar, a crypto boom, or rising yields on U.S. government bonds. But reality had other plans. So far, the only asset consistently hitting new highs is gold.

Gold has now surpassed the critical psychological level of $2,900 per troy ounce and is edging closer to the symbolic $3,000 mark. Not long ago, surpassing $2,000 seemed like a major feat. Today, gold has soared over 40% in just 12 months – a level of growth that would have seemed like science fiction five years ago. And yet, all previous forecasts now seem too conservative.

Why Is Gold Surging – and What Does Trump Have to Do with It?

Just one month into Trump’s new term, gold prices have already climbed more than 7%. So what’s driving this rapid ascent?

1. Global Debt at Record Highs

By the end of 2024, global debt reached an eye-watering $323 trillion – levels not seen outside of wartime. Major economies across the globe are accumulating debt at unprecedented rates. Even the U.S. is running a budget deficit above 7%, with projections pointing to further deterioration.

Debt equals inflation. Historically, the most politically viable way to reduce such massive debt is through monetisation – printing money to inflate the economy and devalue existing debt. As nominal GDP rises, the real value of debt shrinks – and gold, a traditional hedge against inflation, moves higher.

2. Tariffs Return With a Vengeance

President Trump has once again unleashed a wave of tariffs, even more aggressively than before. This time, the tariffs are not just targeting China, but any country contributing to the U.S. trade deficit – including Canada, Mexico, the EU, several Latin American nations, and possibly others in Asia.

Why does this matter for gold? Tariffs reduce global trade and increase economic friction, which historically boosts demand for safe – haven assets like gold.

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3. A Shifting Geopolitical Landscape

Trump is reshaping global alliances, focusing more on East Asia while stepping back from commitments to Europe. This new geopolitical direction is creating global uncertainty.

As nations scramble for strategic security, gold, used as a store of value for over 5,000 years, is once again being embraced as a hedge

4. A Weaker Dollar is the Goal

Trump has made it clear he doesn’t want a strong U.S. dollar. He wants robust exports and a booming stock market. Meanwhile, central banks around the world are diversifying away from dollar-based assets.

For the third consecutive year, central banks have bought over 1,000 tonnes of gold. And it’s not just the BRICS nations, Poland is aiming for 20% of its reserves in gold, while the Czech Republic plans to increase its gold holdings tenfold within six years.

When central banks buy gold by the ton, prices climb.

5. The Euro Weakens as Confidence Shifts to Gold

At the start of 2025, the euro dropped below $1.03, its weakest level since October 2022. Why? U.S. bonds are offering higher yields, and investors are moving their money accordingly.

Tariffs also cause investors to sell off the currencies of U.S. trade partners, accelerating depreciation. As confidence in European assets wanes, investors and central banks turn to gold, a credit-risk-free reserve asset. In fact, 2024 was the first year that gold overtook the euro in global central bank reserves.

Gold is now considered more trustworthy than the world’s second most traded currency.

6. Trump’s Economic Nationalism Favours Gold

Trump’s policy of economic nationalism – marked by tariffs, subsidies, tax breaks, and high government spending – is inflationary by nature. Combined with geopolitical instability, these policies create the perfect storm for gold to thrive.

7. Radical Reform? Investors Bet on a Historic Move

Under the surface of all this is a potentially explosive development: rumors of a major monetary reform being explored by Trump’s new Treasury Secretary, Scott Besant.

At the core of the speculation is the revaluation of U.S. gold reserves, which are still officially priced at just $42 per troy ounce. With market prices now over $2,900, revaluation could unlock over $800 billion for the U.S. Treasury – helping to plug the country’s deficit without issuing new debt.

If Trump allows the revaluation and begins adjusting the gold price in the national accounts at regular intervals – like many central banks already do – it could benefit both the Treasury and the gold market. Imagine the Federal Reserve reintroducing quantitative easing (money printing): it would push gold prices higher and simultaneously boost Treasury reserves.

Debt monetisation plus rising gold prices equals a win for Trump’s fiscal strategy.

8. Institutional Investors Prepare for the Gold Standard 2.0

More and more institutional investors are buying gold – not only because of inflation and debt concerns but also because of the potential for this game-changing monetary reform. If Besant’s rumoured plan comes to life, gold could return to the centre of global monetary policy.

But for that to happen, the Federal Reserve must play along

Fed Chair Jerome Powell has a tense history with Trump, especially during the COVID-19 crisis. Trump recently claimed he understands interest rates “better than the people at the Fed.” Powell’s term ends in May 2026, meaning that if a radical shift is coming, it could happen as early as summer 2026.

These developments even tie into Elon Musk’s call to audit the gold reserves at Fort Knox – an essential step if the U.S. is going to revalue its gold holdings.

Gold’s Historical Trajectory – and What Comes Next

Gold has always thrived in uncertain times. After the gold standard ended, it took 37 years for the metal to reach $1,000 per ounce in 2008. Just 12 years later, it passed $2,000 in 2020. Now, five years on, it’s already above $2,950.

According to Goldman Sachs, $3,000 gold is likely by the end of 2025. Once a psychological barrier is breached, the next one usually comes quicker. Many investors are now looking to the $4,000 mark – and even $5,000 by 2030 is starting to look plausible.

Conclusion: Trump Adds Rocket Fuel to an Already Bullish Gold Market

The underlying fundamentals behind gold’s rise – global debt, inflation, central bank demand, and geopolitical instability – were already in place. But Trump’s return has amplified them, accelerating gold’s bull run.

If the most optimistic scenarios playing out in financial circles become reality, we could see targets originally set for 2030 reached as early as 2025. And a future where gold hits $5,000 per ounce by the end of the decade is no longer just a fantasy, it’s an increasingly realistic forecast.