Marc Abear: Is the price of gold rising a good thing or a bad thing?

To The Daily Sun,

Since the start of 2025, the price of gold has risen from $2,600 to $4,000 per ounce. It’s the largest run up since the late 1970s. This is an effective devaluation of the dollar by 35%.

Is it the policy decisions of the Donald Trump administration contributing to the rise in gold price? Is the increase good or bad? Certainly, the administration’s policy approach is unorthodox, but does that mean wrong? Has the federal government been more correct than the administration about the impacts of the policies?

By freezing the dollar assets of countries hostile to the U.S. and imposing import tariffs on trading partners, the Trump administration has made the U.S. appear to be a changing economic partner.

Gold lies beyond the Trump administration’s control. Global central banks have moved toward gold. This is, in large part, the result of planned, coordinated action by the BRICS nations.

Today, international central banks’ gold holdings constitute 20% of their overall international reserves. Would this have been the case regardless of the presidential election results? Probably.

America’s domestic debt is too high. The One Big Beautiful Bill made things worse, not better. It will add $4 trillion to the U.S. debt over the next decade. By 2030, America will have a debt to GDP ratio higher than Italy or Greece.

President Trump is attempting to direct the Federal Reserve to cut interest their lending rates. He’s planning to appoint a monetary policy dove as Federal Reserve chair. This is leading some to fear U.S. inflation and further flight toward gold.

In the past, the U.S. has dealt with excessive debt through currency manipulation. Today, weak as the dollar’s fundamentals are, those of its competitors in Europe, China and Japan appear as troubled. Without an attractive alternative, investors will continue their flight to gold.

Marc Abear

Meredith