The economic situation in the United States, marked by a growing deficit and rising debt, is causing uncertainty in the financial markets. These tensions are having a direct impact on the value of dollars and, consequently, on the price of gold. As a safe-haven asset, gold is becoming a preferred solution for investors seeking protection against economic fluctuations. 

So how precisely do the US deficit and debt influence the price of gold, and why is this asset attracting increasing attention in times of crisis ?

US deficit and debt: a growing threat to the global economy

The United States, with its dominant position in the global economy, has a considerable impact on financial markets. The budget deficit and rising US debt have triggered concerns among investors. In times of crisis, the value of dollars can be devalued due to economic instability, causing significant repercussions for the US dollar.

When the value of dollars falls, investors seek to protect their assets against currency volatility. They turn to gold, seen as a option in times of crisis. What's more, the current value of the dollar has a direct influence on dollar gold, since most international transactions are conducted in US dollars. So a fall in the US dollar can push up the price of gold, as demand increases as investors seek to protect themselves.

How the US crisis is affecting global gold trading

Gold has always played a central role in investment strategies. In times of economic turbulence, it is common to see a rise in the price of gold. This is because investors have confidence in gold, which is not dependent on currency fluctuations or central bank decisions. At a time of instability, gold stands out for its ability to preserve the value of assets over the long term.

Governments themselves have recognised this advantage. That's why some countries are increasing their gold reserves, to stabilise their economies in the face of global financial uncertainty. Indeed, the rise in gold prices clearly shows that this metal remains a solution for protecting against crises. So it's not surprising that iconic coins like the Souverain and the Philharmonique are particularly popular, as are 100-gram gold bars.

Gold in times of crisis : why are countries building up their reserves in the face of uncertainty ? 

In times of geopolitical fluctuations, gold is an essential safe-haven asset. Find out why gold is the best choice for protecting your savings :

Why are countries banking on gold to protect their economies ? 

Countries are increasing their gold reserves to protect themselves against currency fluctuations and economic crises. Unlike currencies, which can be devalued, gold retains its value over the long term. By increasing their gold reserves, governments are seeking to stabilise their economies and limit the effects of global crises.

This growing interest in gold as a strategic reserve demonstrates the importance of this metal for governments that want to ensure the solidity of their assets in the face of economic uncertainties.

Coins or bullion : two pillars for securing your assets

Gold coins offer great flexibility thanks to their ease of resale and their ability to appreciate in value over time. Gold bars, on the other hand, are ideal for securing larger amounts while offering stability and diversification. These two forms of investment provide protection against inflation and market volatility.

An essential ally in times of crisis

For investors, investing in gold helps to protect their assets against inflation and economic crises. In uncertain times, gold offers stability that other forms of investment do not. Whether in coin or bullion form, gold remains a tangible asset that increases in value over time, protecting wealth against market fluctuations. This makes it a wise choice for investors looking to diversify and secure their portfolios against the vagaries of the global economy.

As a result, the impact of the US situation on the gold price is undeniable. The growing deficit and colossal debt in the United States are undermining the value of dollars, leading to a rise in gold as a safe-haven asset. 

Faced with these uncertainties, investors - whether they opt for gold coins or gold bars - see this precious metal as a solution for protecting their assets.

While economic tensions persist, gold continues to strengthen, offering investors stability in the face of global fluctuations.