Author: Gold News Club

Seemingly overnight, the stock market dropped from record highs to a nearly 10% correction amid rampant economic uncertainty. Investors are attempting to reconcile promises of a strong economy with the current reality of instability.

In this week’s The Gold Spot, Scottsdale Bullion & Coin Founder Eric Sepanek & Precious Metals Advisor Todd Graf discuss the causes behind the market’s recent drop, why more “economic pain” might be around the corner, and the potential impact of a failed Fort Knox gold audit.

Sharp Stock Losses

Steep stock market losses have been the focal point of a frantic economy, as policy confusion and weak macroeconomic data have put the country on edge. Since February highs, the S&P 500 and the Dow Jones have fallen by around 10% & 9%, respectively. This sharp decline is largely attributed to President Trump’s whipsawing tariff announcements.

The Trump administration has acknowledged the “short-term pain, long-term gain” situation induced by tariffs as it works to revitalize US manufacturing. However, the constant back-and-forth tariff policies have created a broad sense of uncertainty as investors and businesses grow hesitant in an unpredictable environment.

A nearly 10% loss across the stock market is enough to jolt investors of all risk levels, but zooming out to a broader time frame can add some perspective. The post-pandemic boom saw indices climb to multiple record highs through several years. For instance, between March 2020 and March 2025, the S&P 500 is up more than 140%.

More Economic Pain on the Horizon

The stock market slump isn’t an isolated phenomenon. Various economic indicators are flashing red, suggesting more economic turmoil on the horizon. Sticky inflation, lower GDP forecasts, and a looming government shutdown exacerbate the adverse effects of Trump’s frenetic trade policy. Although Commerce Secretary Howard Lutnick denies the possibility of a recession, President Trump declined to rule out the potential.

DOGE’s Economic Effects

Trump’s tariff policy is taking center stage in the latest bout of economic turmoil, but the core issues precede this new administration. Under the Modern Monetary Theory (MMT) model, the government has been printing and spending money with no regard for the consequences.

Under Joe Biden, the money supply was nearly doubled. This easy government cash was funneled into the stock market, pushing companies far beyond healthy evaluations. As a result, Trump and DOGE’s gutting of waste is directly impacting the stock market.

Everybody needs to understand that what Trump is doing with tariffs, everything he’s uncovering with DOGE and government spending, that’s going to have effects on Wall Street and the stock market.

–Precious Metals Advisor Todd Graf

The Impacts of a Fort Knox Audit

The impact of Trump’s aggressive economic agenda isn’t relegated to conventional markets. The upcoming Fort Knox audit has the potential to transform the gold market and even the dollar. The DOGE initiative seeks to conduct a thorough investigation to determine whether the world’s largest holding of gold bullion is indeed there. Even a slight disconnect between the officially stated reserves and the actual amount could send shockwaves through the economy.

Higher Gold Prices

Whether it’s an honest accounting error carried over for decades or a massive government-led coverup, this discrepancy may send prices soaring. The gold supply would suffer an immediate loss of resources, and gold prices would rise to meet this immediately zapped availability.

“The Fort Knox audit…could drastically change the supply and demand of gold that we know about. If there are any discrepancies, we could see the price jump very quickly.”

Todd Graf

Precious Metals Advisor

👉 Suggested Reading: Gold Breaks $3,000 Barrier. Experts Predict More Gains Ahead

Damaged Dollar

The abandonment of the gold standard in 1971 severed official ties between the US dollar and gold. Yet, with the largest gold reserves in the world, the US has always maintained an informal relationship between its currency and the yellow metal. Thus, any inconsistencies at Fort Knox could deal a blow to the dollar’s value, too.

To help give investors key insights into this momentous issue, check out our infographic: Does Fort Knox Really Have Gold, Or Is It Just Another Conspiracy? In this 2015 report, we discuss the truth behind one of the most debated mysteries in financial history and see what it could mean for your savings.

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Gold prices crossed the $3,000 threshold for the first time late Thursday, confirming this year’s momentum and treating bulls to a major milestone. This breakout has the yellow metal up over 38% year-on-year and nearly doubled its value since 2020. Breaking through the $3,000 ceiling is a notable achievement, but many analysts suggest there is more in gold’s ongoing rally with plenty of fuel in the tank for more all-time highs.

Gold Prices Cross $3,000 an Ounce

On the COMEX, gold futures opened at $2,998.20 yesterday morning (March 13, 2025), before hitting a high of $3,003.80, officially extending beyond the $3,000 mark for the first time. Throughout March 13, prices traded within a tight range, hitting a low of $2,995.00 and a high of $3,003.80, signaling consolidation rather than a sharp rejection at this key level.

This morning, Friday, March 14, 2025, the spot market joined this historic rally. Spot gold prices briefly surpassed $3,000/oz, achieving a new record high of $3,004.67/oz (intraday)¹. COMEX prices continued to rise, reaching an intraday peak of $3,017.10/oz.

A Milestone, Not the Finish Line

Gold bugs have been eyeing $3,000 for years, but this arbitrary number is purely psychological. It has no real impact on gold’s performance, only to the extent investors perceive it. That’s why many experts predict gold will soon push beyond the $3,000 limit.For instance, VanEck CEO Jan van Eck’s nonchalantly bullish reaction is: “Who cares. Talk to me when it hits $5,000.”

As Scottsdale Bullion & Coin’s Sr. Precious Metals Advisor Damian White explains,

I would think you should be able to see $3,300 pretty quickly…maybe this year as a personal price target, but I have seen some estimates of even as high as $4,500 for the end of 2026.

This upward projection aligns with several major financial institutions upping their gold price targets for 2025.
 

• UBS: Forecasts gold reaching $3,200, stating the metal “has again proven itself…as a store of value and hedge against uncertainty.”
• VanEck: Targets prices hitting $3,250 as “people turn to gold…if there’s trouble in the US or global economy.”
• Goldman Sachs: Raises outlook to $3,300, citing “structurally higher” central bank demand.
• Bank of America: Sets a bullish target of $3,500, driven by “exceptional purchases by the official sector.”
• Macquarie Bank: Expects gold to reach $3,500 by Q3 2025, matching its inflation-adjusted 1980 high.

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The Short-Term Drivers

Experts attribute gold’s recent surge over the $3,000 barrier to a combination of mounting macroeconomic concerns. Persistent inflation, weaker spending, declining consumer confidence, a softening job market, and downward GDP revisions have all contributed to the metal’s surge.

However, the most immediate catalyst may be policy uncertainty, as Trump’s rapidly shifting tariffs rattle markets. Other short-term drivers that could cement gold’s position above $3,000 include the upcoming Fort Knox audit or a possible shift in the Federal Reserve’s rate policy.
 

The Long-Term Support

Although short-term uncertainty and instability have elevated gold prices over the $3,000 hurdle, a future rally would be sustained by foundational economic and geopolitical shifts, such as:

Central Bank Demand – National gold demand spiked in the wake of the Russian invasion of Ukraine in 2022 and consumption has remained above 1,000 metric tons for the past three years. Central bank appetite is expected to remain strong moving forward.

De-Dollarization Trends – Friend and foe are proactively de-dollarizing their economies as the US dollar’s weaponization and weakness make it more of a risk than an asset. Gold has arisen as the go-to replacement for the greenback.

Fiscal Mismanagement – The US’ wholesale embrace of Modern Monetary Theory (MMT) has led to a monumental $36 trillion debt, caused by unchecked spending and printing. Investors at all levels increasingly see gold as protection against the dollar’s mishandling.