Elon Musk has publicly questioned whether the U.S. gold reserves are truly located in Fort Knox and whether they amount to the declared $425 billion. In response, Republican Senator Rand Paul has invited Musk to conduct an audit of these reserves. The billionaire, known for his controversial statements and actions, has expressed a desire to broadcast the event live.
A new week, which is slowly becoming a tradition, means a new all-time high for gold prices. On Monday, February 24, the precious metal, for the twelfth time this year, broke its historical record, with the current all-time high exceeding $2,956 per ounce! Additionally, last week, the metal hit historic highs twice.
Analysts point to geopolitical tensions as the main factor influencing the price of the metal. Special attention was drawn to recent comments by Donald Trump, suggesting that Volodymyr Zelensky should expedite peace talks, as international support for Ukraine may soon dwindle.
Significant influence on gold prices also comes from statements by the U.S. Federal Reserve regarding inflation and interest rates. According to current market forecasts, there may be only one rate cut in the U.S. this year, whereas just recently, four cuts were expected.
Fluctuations around U.S. monetary policy and uncertainty regarding the geopolitical situation are causing investors to seek stable forms of capital investment. The rise in gold’s value is primarily due to the growing demand for safe assets during times of uncertainty.
Elon Musk wants a gold audit at Fort Knox
Senator Rand Paul from Kentucky has officially invited Elon Musk to inspect the U.S. gold reserves at Fort Knox. The invitation followed Musk’s expression of doubt about the actual presence of $425 billion worth of gold in the government’s vault.
The issue of the actual gold reserves in the U.S. has been a topic of controversy for years. The last serious audit took place nearly 50 years ago, and in the current economic and political climate, the subject is gaining prominence. If a public audit of Fort Knox were to occur, it could have a significant impact on global financial markets.
Donald Trump himself has confirmed plans to visit Fort Knox, which may indicate growing interest from the administration in the issue of gold reserves. It is worth noting that U.S. gold is still accounted for at $42.22 per ounce (a 1970s price), while the current market price is close to $3,000.
Market observers speculate that if the gold in Fort Knox truly exists and its value is recalculated according to current market prices, it could mean a huge financial boost for the U.S. However, with the current national debt exceeding $36 trillion, the impact on the economy may be limited.
India bets on investment gold
In India, traditionally known for its high demand for gold jewelry, rising prices have slightly dampened this segment of the market. However, there is a noticeable increase in interest in gold as an investment, confirmed by the latest data from the World Gold Council.
The Association of Mutual Funds in India (AMFI) recorded a record net inflow into gold-backed ETFs in January, totaling 37.5 billion rupees (approximately $435 million). This amount significantly exceeds the average of the last 12 months, which was 9.4 billion rupees ($112 million).
The Reserve Bank of India also resumed its gold purchases in January, after a pause in December, increasing the country’s reserves by 2.8 tons, continuing the trend from last year. In 2024, India was one of the largest gold buyers globally, in terms of reserve growth (73 tons), second only to Poland and Turkey.
The situation in China is somewhat worse – Chinese gold ETFs saw a fund outflow in January (-4.7 tons). At the same time, the Chinese central bank continued its purchases, adding 5 tons of gold to its reserves, reaching 2,285 tons, or 5.9% of the country’s total reserves. Analysts, however, predict that demand for gold in China will increase.
Michał Tekliński
