Revaluation Of U.S. Gold Reserves Could Impact Financial System

According to Odaily, Wrightson ICAP has indicated that while revaluing U.S. gold reserves under the debt ceiling constraints might seem appealing, it could have significant implications for the financial system. This move would increase liquidity and extend the Federal Reserve's balance sheet reduction timeline. The core idea involves adjusting the valuation of gold reserves from the legacy Bretton Woods price of $42.22 per ounce to the current market price. Wrightson ICAP economist Lou Crandall noted that the likelihood of reassessing the Treasury's gold holdings is low, with minimal benefits and potentially chaotic public relations outcomes. Previously, there were reports of Hong Kong considering the tokenization of gold, and debates have arisen over the audit of U.S. gold reserves, with the crypto community supporting the value of Bitcoin reserves.