Gold Surges As Traders Hedge Against Fiscal Risks And Currency Debasement

Benzinga

Gold broke above $4,000 an ounce as investors hedge against U.S. fiscal risks and a weaker dollar. Fueled by Fed rate-cut signals and Trump’s tax plans, the “debasement trade” drives record demand for gold and bitcoin.

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00:00It's Benzinga bringing Wall Street to Main Street.

00:02Gold surged above $4,000 an ounce as investors poured into precious metals and Bitcoin

00:06amid fears of currency debasement and U.S. fiscal strain, according to the Wall Street Journal.

00:11So-called debasement trade gave momentum after Federal Reserve Chair Jerome Powell

00:14signal rate cuts despite high inflation, while Trump's pledges of tax cuts and tariffs

00:19weakened the dollar. Gold futures have climbed 52% this year, outpacing rallies during the pandemic

00:24and Great Recession. Vanguard's Joe Davis said markets are split between investors

00:28betting on an AI-driven stock boom and those hedging against U.S. fiscal risks with gold.

00:33Citadel Securities founder Ken Griffin said gold has replaced the dollar as the world's safe haven

00:37asset, prompting him to stay optimistic on U.S. business while protecting against government risk.

00:43U.S. dollars stabilized, and the Supreme Court may block Trump's efforts to gain more control

00:47over the Federal Reserve. TV Securities noted that confidence in American institutions has

00:51historically helped preserve the dollar's global reserve status. For all things money, visit Benzinga.com.

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