Gold Price To Hit $6,000 Under Trump’s Term As Dollar Resets And BRICS Accelerate Gold Buying

(April 25, 2025 - Jeremy Szafron, Kitco)

(Kitco News) - Gold prices could reach $6,000 an ounce by the end of President Donald Trump’s term, according to Frank Holmes, CEO of U.S. Global Investors and Executive Chairman of Hive Digital Technologies. Holmes told Kitco News that the rally is being driven by a structural reset of the global financial system, de-dollarization, and intensified sovereign gold accumulation, particularly by China.

“I think the goal should be going to $6,000 over the term of President Trump,” Holmes said. “If the tariffs go up 25%, then the dollar has to go down 25%.”

Gold is holding around $3,300 an ounce on Friday after touching a record high of $3,509 earlier this week, before a sharp $200 pullback. JPMorgan is forecasting $4,000 gold within 12 months. Holmes, however, sees more upside if global central banks continue their pace of accumulation.

China's role in gold's rise

The People’s Bank of China (PBoC) has emerged as the largest sovereign gold buyer for the fifth consecutive month. In the first quarter of 2025 alone, China added more than 27 tons to its reserves, bringing its official holdings to over 2,300 tons – the highest in the country’s modern history. Unofficial estimates suggest the true figure may be much higher when accounting for state-linked entities like SAFE and commercial bank holdings.

Holmes said this accumulation is part of China’s broader strategy to weaken reliance on the U.S. dollar and strengthen the yuan’s credibility as a global trade currency. “Xi Jinping has escalated military spending substantially… He also has icebreakers and he’s making nuclear icebreakers ’cause he believes the Arctic Sea is his,” Holmes warned, linking the geopolitical tensions to the dollar’s structural decline.

A reset in motion

The Federal Reserve is facing increased political pressure to lower interest rates amid mounting trade tensions, while the IMF has downgraded U.S. GDP growth to just 1.2% for 2025. Treasury Secretary Scott Bessent this week criticized the IMF and World Bank for focusing on social policies rather than economic stabilization, calling for a global monetary “reset.”

Holmes believes this policy pivot will further weaken the dollar. “It’s a reset button that’s going on,” he said. “It’s also a war with the leader of China.” Holmes said that while the BRICS bloc pushes to de-dollarize, “really all that’s happened is the dollar trade’s gone up and the euro has gone down.” But the trend toward monetary realignment is underway.

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I think the dollar is gonna trade down,” Holmes added. “When you get negative real interest rates, you get money printing… it triggers devaluations and gold as an asset class all of a sudden gets that resurgence.”