Proposed US gold reserve audit could spur blockchain adoption for sovereign reserve tracking, analysts say

Gold prices edged higher on Tuesday, trading just below their all-time high of $2,942, as investors sought safe-haven assets amid renewed concerns over U.S. trade policy. Gold investors appear to be establishing a higher support base around the $2,880 mark over the past week, reinforcing the bullish momentum for the precious metal.

The uptick in gold prices follows U.S. Senator Rand Paul’s call for an audit of the United States’ gold reserves stored at Fort Knox. Paul has suggested that Elon Musk’s Department of Government Efficiency (DOGE) could conduct the review, reigniting debates about the transparency of traditional assets versus bitcoin. Fort Knox reportedly holds 147.3 million ounces (4,600 tons) of gold, but the reserves have not been independently audited since 1974 — fueling skepticism and conspiracy theories about their actual existence and value.

WeFi Head of Growth Agne Linge told The Block that any audit revealing discrepancies in tracking U.S. gold reserves could justify upgrading the system with a publicly accessible technology like blockchain. "With this, the quantity of gold in different vaults can be tracked in real-time and verified by any user, giving room for more transparency. While the conversation of tokenizing gold at the national level is not up yet, Elon Musk has hinted at the possibility of placing some of the Treasury’s operations on a blockchain," Linge said. "Efficiency is the new theme of the U.S. Government, and blockchain is a dynamic technology that can help achieve this for gold and other key areas that demand public accountability."

Linge’s remarks reference Musk’s prior endorsement of blockchain technology for financial oversight. “Career Treasury officials are breaking the law every hour of every day by approving payments that are fraudulent or do not match the funding laws passed by Congress,” the Tesla CEO wrote on X in early February. “This needs to stop now!” When an X user asked whether the Treasury "should be put on the blockchain so this doesn’t happen,” Musk replied, "Yes!"

Gold price hike driven by macroeconomic concerns

Bitfinex analysts note that gold’s price rise has been driven by geopolitical tensions, including the ongoing war in Ukraine and concerns over U.S. trade policies. According to the analysts, gold’s strength is also fueled by uncertainty surrounding President Donald Trump’s renewed push for trade tariffs.

Since returning to office, Trump has introduced new tariffs and hinted at further reciprocal measures against countries imposing duties on U.S. goods. The Biffinex analysts said this disruption to global trade has heightened economic concerns, driving investors into gold as a safe-haven asset. They added that speculation has also emerged about potential tariffs on gold itself following the 25% tariff imposed on steel and aluminum. "Gold prices have risen to well over $2,900 per ounce and may well reach $3,000, as some of the tariff speculation extends to gold itself being subject to import tariffs," Bitfinex analysts said.

"We personally don't believe that Trump will do a public audit of the gold reserves, despite some conspiracy theories contending that the U.S. does not have the reserves of gold it advertises," Bitfinex analysts said. "However, if this were to be proven, it would have a serious impact on the U.S. dollar as well as negatively affect the broader economy."

Audit of Fort Knox gold reserves

The Bernstein analysts added that if an audit of gold at Fort Knox found that the amount of gold is less than that reported, then the value of dollar would likely weaken. "Even though the U.S. dollar is no longer on the gold standard, any perception of the U.S. holding less gold than previously believed would knock confidence," Bitfinex analysts said.

They then added that bitcoin, often touted as "digital gold" for its fixed supply and transparency, which could see increased interest in such a scenario as it offers a transparent hedge against uncertainty over the backing of fiat currencies or the level of physical reserves, given that bitcoin supply levels cannot be altered. "The prospect of a Fort Knox audit could also amplify doubts about centralized reserves, potentially boosting bitcoin’s appeal as a verifiable, decentralised alternative," Bitfinex analysts said. "If trust in gold wavers, investors might turn to bitcoin to hedge against systemic uncertainty."

Agne Linge added that should an audit reveal discrepancies, it could impact gold’s recent price growth. "Should the physical gold and paper gold show deviation, it only implies humans are generally untrustworthy or that the system designed to monitor the asset is outdated and no longer efficient," Linge said. "Gold has held its safe-haven status for several decades of occasional economic uncertainties, and should the U.S. flag a loophole in their systems to safeguard the asset, there may be a ripple effect, but it will be temporary."

Meanwhile, Goldman Sachs has raised its year-end gold price target to $3,100 per ounce, citing strong central bank demand and increased speculative positioning, according to Reuters. The firm also noted that heightened policy uncertainty — particularly concerns over Trump’s tariffs — could push gold as high as $3,300 by the end of the year if safe-haven demand remains strong. With gold already up 9.7% year-to-date at $2,925 an ounce, the bullish outlook remains intact.