Amid the prevailing economic uncertainty and the brewing trade war triggered by Donald Trump’s tariffs, United States Treasury Secretary Scott Bessent has outlined the significance of gold during such a period.
In an interview with Tucker Carlson, published on April 4, Bessent discussed the factors behind the surge in gold demand and movement, highlighting the metal’s resilience and appeal in uncertain times.
Bessent emphasized that gold continues to serve as a globally trusted store of value, particularly in countries experiencing financial instability.
He noted that China, for instance, is seeing significant demand for the yellow metal as its economy faces recessionary pressures and strict capital controls.
“There are a lot of different stores of value over time. Bitcoin (BTC) is becoming a store of value. Gold has historically been a store of value. What’s interesting is where we see the gold demand coming from. A huge amount is from China, where they’re in the middle of an economic recession/depression. People don’t trust the Chinese currency because they have capital controls,” Bessent said.
Gold store of value status
The official also highlighted the contrast between gold and other forms of value, noting that the metal is unaffected by risks that threaten fiat currencies, such as government debt, inflation, or geopolitical conflict.
This quality has made it increasingly attractive to individuals, central banks, and institutional investors seeking stability.
Beyond its role in financial markets, Bessent stated that the yellow metal remains in high demand for practical and cultural uses, particularly in countries like India, where it plays a major role in jewelry and traditions.
Amid the uncertainties, Bessent pointed to the physical relocation of large quantities of the precious metal. This shift was driven by initial concerns over whether gold would be subject to new U.S. tariffs under President Trump’s trade agenda.
“It’s moving because of potential tariffs here. It was unclear whether we would exempt gold from tariffs, which I believe we have. So, there was a big move-out of vaults in Switzerland and out of vaults in London to get it into New York,” he added.
Gold price analysis
It’s worth noting that gold was on a bullish momentum in the run-up to the April 2′ Liberation Day’ tariffs, surging past the long-standing resistance of $3,000.
Notably, the metal took a hit following the widespread market sell-off, trading at $3,037—down 2.4% during the April 4 session. Year-to-date, the precious metal is up over 15%.
Meanwhile, as reported by Finbold, investor and author Robert Kiyosaki is among the financial market figures who recommend investing in gold. The investor suggested that amid the current sell-off, investors can preserve their wealth in silver and Bitcoin, in addition to gold.
Watch the full interview below:
Featured image via Shutterstock
