Key Takeaways:
The U.S. has issued $1.2 trillion in new debt since Congress approved a $5 trillion debt ceiling increase, boosting demand for gold.
Matrixport says Donald Trump’s rising influence over Federal Reserve appointments could reshape monetary policy.
Crypto traders are increasingly allocating to tokenized gold, injecting new capital into the sector.
Matrixport analysts say the recent surge in gold prices is being fueled by both U.S. fiscal expansion and shifting Federal Reserve dynamics. Since Congress approved a $5 trillion debt ceiling hike, the Treasury has issued $1.2 trillion in new debt, creating concerns over fiscal stability and driving investors toward gold.
At the same time, Donald Trump’s growing influence on Federal Reserve decision-making is becoming a key market factor. Matrixport noted that Trump is actively promoting candidates who may soon secure a majority at the Fed, potentially reshaping its policy direction.
The report also highlights that crypto traders are moving capital into tokenized gold, strengthening the case for gold as both a traditional and digital asset class. With gold historically correlated to Bitcoin, the shift underscores how investors are seeking alternative stores of value amid rising concerns about U.S. debt and fiscal discipline.