Could Trump 2.0 Put an End to Gold’s Rally?

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February 21, 2025

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In just one month, President Donald J. Trump has accomplished what takes most presidents an entire term. His approval ratings remain among the highest of his career¹, signaling broad public support for his agenda. As he wages an all-out war on federal waste and corruption, investors wonder how these bold moves could impact gold, especially after years of steady gains.

In this week’s The Gold Spot, Scottsdale Bullion & Coin Sr. Precious Metals Advisor Steve Rand and Precious Metals Advisor Tim Murphy discuss gold’s past performance under Trump, why the gold price ceiling is bursting, what’s going on with Fort Knox, and a ✨ NEW REPORT you’ve got to see.

Gold’s Bullish Track Record Under Trump

Trump’s first term offers a clear precedent for assessing gold’s performance under his leadership. From 2017 to 2020, gold prices soared over 54%, highlighting the metal’s strong bullish run during his first presidency.

Even with a strong economy through most of his tenure, Trump still oversaw a 54% gain in gold prices.

Under Trump 2.0, the gold spot price is already up 12% year-to-date, posting an impressive 9% gain in the first month alone. This marks one of the strongest Januarys in years for precious metals. Experts forecast that tariff threats, trade wars, geopolitical turmoil, and inflationary pressures could fuel further growth in gold under Trump. But will it? More on this below.

Gold’s Price Ceiling Is Breaking

For years, major bullion banks have artificially suppressed gold and silver prices by selling futures contracts to keep prices in check. Around eight of the most influential banks have played a key role in this strategy, though their exact motivations remain unclear. However, arrests and hefty fines have exposed the scale of this market manipulation.

Importantly, this strategy depends on access to bullion, something that has become increasingly scarce. Central banks, particularly in emerging markets, have been stockpiling gold at record-breaking rates, pushing prices beyond the artificial barriers set by market manipulation.

Over the years, the gold market has been held down by certain banks. All of a sudden, gold took off because the central banks started buying physical gold.
– Precious Metals Advisor Tim Murphy

As physical gold bullion supplies tighten, institutional investors in the futures market are forced to take delivery, further depleting available inventory. Now, the LBMA and other bullion banks are struggling to meet investor demand, facing delays as rising demand collides with dwindling supply.

“You can only imagine what would happen if the price of gold was allowed to trade freely.”
Steve Rand
General Manager / Sr. Precious Metals Advisor

Retail Investors on the Sidelines…For Now

As central banks drive gold bullion prices higher and tighten supply, retail investors have largely stayed on the sidelines. Some are following the lead of institutional investors, while others are hesitant due to gold’s rising prices. However, it’s only a matter of time before the individual investor catches on to the forces driving gold record-breaking rally, fueling quick surges in spot prices and premiums as soon as they jump in.

“The public is still not super excited about gold yet. Every time gold gets into a bull market, the public eventually jumps in and drives the prices higher.”
Tim Murphy
Precious Metals Advisor

Fort Knox Audit: Is It Finally Happening?

Elon Musk’s Department of Government Efficiency (DOGE) has expressed interest in auditing Fort Knox to verify that the nation’s gold reserves are still intact.

Looking for the gold at Fort Knox … pic.twitter.com/YVGQvBfwVt
— Elon Musk (@elonmusk) February 17, 2025

Since 2011, Senator Ron Paul has called for another audit of Fort Knox. A special assessment (audit) took place on September 24, 1974, but the last official audit occurred over 70 years ago under President Dwight D. Eisenhower.

While Treasury Secretary Steve Mnuchin toured the facility in 2017 and confirmed the gold was there, no comprehensive audit has been conducted since. Whether DOGE’s inspection will reveal anything new remains to be seen, but gold prices could skyrocket if discrepancies emerge.

NEW Report: Is Trump Bad for Gold?

Gold prices surged during Trump’s first term, but shifting political, economic, and geopolitical forces could change the game this time. In a new, free report, we’ve compiled an in-depth analysis of what Trump 2.0 could mean for gold, breaking down the key factors that could impact the market over the next four years.

If you want to make the most of your precious metals portfolio, don’t miss out on this FREE report!

To receive your free access to this report, contact your SBC Precious Metals Advisor or CLICK HERE.

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