While the most probable theory regarding the gold fringe is that it originated in the U.S. Army, another theory is that it’s used to designate Admiralty courts. An admiralty court is a court system that operates under martial law. In other words, it’s a military court that upholds law and order for a civilian population rather than the normal government or judicial system. You’ll often discover American flags with gold fringe in courtrooms throughout the United States. However, that doesn’t mean the gold fringe designates Admiralty courts. There have been lawsuits filed in the past claiming the gold fringe designates Admiralty courts, but all of these lawsuits have been shot down.

The bottom line is that, officially, gold fringe on the American flag doesn’t indicate anything. It’s simply a decorative feature that can either be added to the American flag or left off. It was originally used by the U.S. Army, though you can now find gold-fringed American flags elsewhere.

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[https://starspangledflags.com/why-do-some-american-flags-have-gold-fringe/]