What are the experts, who worked with Trump saying?
1. Is the Trump administration signaling a gold-backed dollar?
No direct policy change, but clear signals and advocacy
While the administration has not declared a shift back to a gold-backed currency, speculation is fueled by:
- Executive Order (E.O.) on “Gold Standard Science”: In May 2025, President Trump signed an Executive Order aimed at making federally funded scientific research more “reproducible, transparent, and falsifiable,” which the administration dubbed “Gold Standard Science” [1], [7] While the content relates purely to scientific rigor, the symbolic use of the phrase “Gold Standard” has been interpreted by some as a subtle sign of the administration’s favorability toward gold-backed concepts [4], [5].
- Project 2025 Proposals: Policy documents associated with the conservative “Project 2025” initiative, which advises a potential conservative administration, have explicitly called for the future president to “strongly consider” returning the U.S. to a gold standard or another form of commodity-backed money [3]. These proposals also recommend significantly reducing the Federal Reserve’s authority [3]
- Advisor Commentary: Key advisors and influential figures close to the administration have historically expressed favorable views on gold’s role in the monetary system, fueling the narrative of a monetary reset.
2. What explains the inward movement of tons of gold into the US?
The inward movement of gold, particularly the shift of large volumes from London to New York’s COMEX vaults, is explained by a convergence of risk diversification, monetary policy, and trade/geopolitical tensions:
- Geopolitical and Trade Policy Risk: The primary driver is thought to be the escalating global geopolitical tensions and the US trade policy uncertainty generated by the administration’s new tariff announcements and protectionist measures [5], [4]
Traders and institutional investors are moving physical gold into US jurisdiction to hedge against the risk of unexpected tariffs on bullion-related items [2], [5] or broad trade disruptions.
- Central Bank De-Dollarization and Demand: Global central banks, especially those in emerging markets (led by China), are significantly reducing their exposure to the US Dollar and increasing their gold reserves at a historic pace.6 This is a strategic move to safeguard national assets against potential sanctions or currency volatility, which strengthens the global market’s belief in gold as an alternative to the dollar [4], [6].
- Economic Uncertainty and Lower Rates: Gold’s appeal has soared (with prices exceeding $4,000/oz in October 2025) due to general economic uncertainty, high inflation, and the Federal Reserve’s recent interest rate cuts. Lower interest rates make non-yield-bearing assets like gold more attractive relative to bonds, driving investor demand and price action [5], [6].
3. Will there be two forms of the USD— a domestic dollar backed by gold and an international dollar that is fiat?
The idea of a dual-currency system is a speculative theory with no official administrative proposal, but it has roots in prior debates:
- Gold-Backed Securities/Debt: The most practical and discussed intermediate step is the issuance of gold-backed Treasuries or bonds. These would be a new class of government debt that is redeemable in gold or linked to its value, existing alongside the current fiat USD [8]. This would allow the government to test an asset-backed system without fully abandoning the fiat system.
- Historical Context: The concept of a two-tiered system (where gold convertibility is limited to certain parties or transactions) is not new. Historically, the Bretton Woods system (1944–1971) was a “quasi gold standard” where the USD was redeemable for gold only by foreign central banks, effectively creating a two-tiered international system [7], [8].
- The Proposal: The specific concept of a “Domestic Gold-Backed Dollar” and an “International Fiat Dollar” is primarily discussed by gold advocates and economic commentators seeking to protect domestic purchasing power while allowing the fiat currency to continue absorbing global trade volatility. However, this full two-tier structure has no current official backing or implementation plan.
References:
[1] Fact Sheet: President Donald J. Trump is Restoring Gold Standard Science in America – May 23, 2025, whitehouse.gov
[2] Trump’s 2025 Executive Orders | Holland & Knight – hklaw.com
[3] The Project 2025 Monetary Policy, Gold Standard and Federal Reserve – UW-Stevens Point – September 12, 2024, blog.uwsp.edu
[4] Gold price surge: why bullion has reached $3,500 in 2025 | IG International – April 22, 2025, ig.com
[5] Gold Hits Record High: Why Precious Metals Are Soaring in 2025 – September 23, 2025, discoveryalert.com.au
[6] Here’s what gold crossing $4,000 is telling us about the U.S. economy – October 8, 2025, cbsnews.com
[7] President Trump Issues Executive Order on “Gold Standard Science” – May 2025, aera.net
[8] On the Unilateral Introduction of Gold-backed Currencies – intereconomics.eu
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