MWE Correspondent
A fresh shift is underway in the global economy as gold prices climb while the U.S. dollar continues to weaken. Analysts say the two movements are closely tied to efforts by BRICS nations to reduce their reliance on the dollar in trade and finance.
The bloc, made up of Brazil, Russia, India, China, and South Africa, has been steadily increasing its use of gold as a store of value. For members such as China and Russia, the strategy has been clear for years: expand gold holdings and cut back on dependence on U.S. assets. India, too, has followed this path in recent years, gradually adding more gold to its foreign reserves.
Gold has long been considered a safe-haven asset, but its appeal is even stronger now. Unlike traditional currencies, it is immune to international sanctions, making it an attractive option for countries that want to secure their financial systems against potential restrictions. Economists say this explains why BRICS members are not only buying more gold but also openly exploring alternatives to dollar-based transactions.
China, the world’s second-largest economy, has extended its gold purchases for nine straight months, signaling a long-term commitment to reshaping its reserve profile. Russia, already heavily sanctioned in recent years, has made gold an essential part of its monetary strategy. Together with India, these nations are helping drive global demand higher.
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The result is a rare moment in which the dollar is falling even when it would typically strengthen. Historically, investors have turned to the greenback during times of uncertainty, but today the trend is moving in another direction. Instead, gold is stepping into that role, underlining the shift in confidence away from the dollar.
Global central banks are also responding to the same pressures. For the first time since the mid-1990s, they now hold more gold reserves than U.S. Treasury securities. This milestone underscores how much the financial world is tilting toward hard assets in an era of geopolitical instability and ballooning debt.
Some experts believe these moves are part of a broader de-dollarization strategy. BRICS leaders have openly discussed creating new payment systems, expanding trade in local currencies, and even exploring the idea of a gold-backed common currency. While such changes will take time, the steady build-up of gold points to a determined shift in direction.
For now, the surge in gold and the slide in the dollar reflect more than speculation. They capture a deeper change in the world economy—one where nations are quietly preparing for a future less dependent on a single currency and more anchored in tangible, reliable assets.
