Africa-Press – Eritrea. The US Treasury’s gold reserves surpassed their all-time high value of $1 trillion on Monday, as the price of gold hit another record high. After gold prices climbed beyond $3,831.33 an ounce on Monday, up 45% this year, the largest gold holding in the world reached the new milestone.
However, their official worth is placed at little more than $11 billion, based on the price of $42.22 per ounce that Congress established in 1973, according to Bloomberg.
Gold prices continued their upward trend, led by geopolitical risk, concerns over the global economy, central banks’ gold demand, and the Fed’s rate cut cycle.
Pressed by US President Donald Trump, the Fed cut its policy rate by 25 basis points last week, and more cuts are expected at the Fed’s October and December meetings.
Weak inflation figures and rising unemployment data, as well as Trump, pushed the Fed to lower rates. The US gold reserve totals about 261.5 million ounces, according to Treasury data.
The US government, not the central bank, owns the gold directly, in contrast to most other nations. Instead, the Fed keeps gold certificates worth the same as the Treasury’s holdings and gives the government cash in exchange.
For More News And Analysis About Eritrea Follow Africa-Press
