Gold returns to the geopolitical spotlight in a way the international market has not seen for decades. And this time, it is not merely another price rally for the precious metal, according to Phoenix Capital Research. The Trump administration appears to be redefining the role of gold, treating it simultaneously as a strategic asset, a tool of national security, and—most importantly—as real money. Developments in recent months create an exceptionally powerful pattern. Donald Trump designated gold a "critical mineral" under Executive Order 14241, aimed at directly boosting American mineral production. Subsequently, the United States Geological Survey (USGS) did not include gold on its own critical minerals list—not because it is deemed unimportant for national security, but because that specific list relies on a narrow legal criterion regarding import reliance. And the US does not depend on foreign nations for its gold production. The real message, therefore, does not lie in the technical exclusion by the USGS. It lies in the fact that the President of the US himself chose to characterize gold as critical to national security.
Bessent puts gold back in the monetary frame
Subsequently, US Treasury Secretary Scott Bessent provided another piece of the puzzle. During an interview on Fox News, he made reference to the era when the dollar was linked to silver and gold prior to the 1970s. Such a reference from a sitting Treasury Secretary can hardly be viewed as casual. Gold appears to be re-entering the American monetary vocabulary not as a simple investment product, but as a benchmark for money itself. And then comes Fort Knox. Scott Bessent was under no obligation to mention the audit of American gold reserves. Yet he did so publicly, even citing a specific figure. According to him, the US has audited the gold reserves at Fort Knox, the gold is fully accounted for, and the value of these reserves at current market prices exceeds $1 trillion. The fact that the US holds the largest gold reserves in the world is not news. However, the urge of a Treasury Secretary to publicly highlight this fact—at a moment when gold's role in the global system is beginning to shift—is distinctly more intriguing.
The big reveal: The US includes gold in sanctions
The defining piece arrived on Monday. During a press conference regarding sanctions against Iran, Scott Bessent included gold within the scope of sanctions, alongside cryptocurrencies and aviation. Herein lies the real turnaround. A government does not impose sanctions on an asset simply because it is valuable. It imposes sanctions when that specific asset is used to transfer value, conduct transactions, or bypass the existing financial system. In plain terms, Washington now officially acknowledges that gold functions as money. And Iran serves as the prime example. Tehran turns to gold precisely because gold does not require SWIFT to operate as a vehicle for value transfer. Gold imports into Iran have surged dramatically, while a former official of the country's central bank has described gold as a type of "vaccine" that shielded the Iranian economy from Western sanctions for 46 years. Washington is well aware of this. The US Department of the Treasury is actively monitoring it. And now it has decided to drag gold itself into the sanctions net. This amounts to an admission that the precious metal serves as an alternative settlement route for a state excluded from the dollar-denominated system.
From a "dead" asset to a weapon of the global economy
For half a century, the role of gold was clear-cut. In 1971, Richard Nixon closed the "gold window," effectively severing the dollar's link to the precious metal. Gold was transformed into a relic of a bygone era, stored away in vaults, while the market began pricing it in hundreds and later thousands of dollars per ounce. The dollar dominated globally, anchored by confidence, the US government, and Treasury bonds. Gold served merely as an "insurance policy" in the event that this confidence collapsed. It was not part of the actual infrastructure of the global financial system. Now, however, the dynamic is shifting. The Trump administration is labeling gold as critical to national security while simultaneously treating it as an asset subject to sanctions. That is, on one hand, it views gold as a strategic resource to be safeguarded, and on the other, as a financial tool that can be used by an adversary to bypass the dollar. This is not just another news headline. It is a tectonic shift in the global monetary system.
Gold is now also a "strategic weapon"
The significance of this development becomes even greater when examining the two new attributes assigned to gold. First, gold is being treated as a strategic asset. President Trump's executive order, the audit of Fort Knox reserves, and public statements referencing reserves worth over $1 trillion demonstrate that the American administration views gold much like it views rare earths, semiconductors, and other resources deemed vital for national security. Second, and even more importantly, gold is being treated as money. Not as a metaphor for money. As real money. As a mechanism through which capital can be moved without passing through the US financial system. And precisely because it can be used in this manner, Washington now wants to control its usage as well.
The message to China and Iran
This development assumes an even more aggressive dimension when China enters the picture. When Scott Bessent was asked directly whether the sanctions regime could impact China, his response was telling: "Nobody is above this." China stands as the largest buyer of discounted Iranian oil, allowing Tehran to maintain its financial flows. At the same time, China and Iran rank among the world's largest buyers of gold. The picture, therefore, becomes remarkably clear. Washington is drawing a line of monetary sanctions directly over the very asset used by two of its main geopolitical rivals to move capital.
This can hardly be considered a coincidence
Gold as a strategic asset and gold as a monetary tool point toward the same adversaries: China and Iran. Gold is returning to the center of the global economy. This is a shift that occurs perhaps once in a generation. The global monetary system has not fundamentally redefined the role of gold since 1971. Now, however, the Trump administration appears to be doing just that. For years, it has been argued that gold is not merely a portfolio diversification tool, but a critical mineral and a national security asset. What is striking is that the US government now seems to be validating both sides of this position. Gold is simultaneously a strategic mineral resource and a monetary tool. And this dual attribute changes the game entirely.
What this means for investors
This development is not an opportunity for a quick trade based on a single sanctions announcement. The real issue is vastly larger. We are witnessing a repricing of the role gold can play within the global system—and this repricing is taking place at the state policy level. Central banks have already been purchasing gold at roughly double their historical average rates for four consecutive years, long before these latest developments. Now, atop this momentum, comes a US administration that designates gold as critical via presidential decree, a Treasury Secretary who feels compelled to publicly defend the Fort Knox reserves, and a sanctions regime that treats gold as an active monetary tool in the hands of a geopolitical rival. These are not three unrelated developments. This is a single administration moving in one direction, targeting one asset, from every available front. Gold spent five decades as a "forgotten" relic of the old monetary system. Now it is making its return. And the Trump administration appears to be reinstating it simultaneously as a foundation of the system and a weapon within it.
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