Gold has reached a record 30% of global reserve holdings, with projections indicating it may soon surpass the U.S. dollar if prices exceed $5,790 per ounce. This significant shift in the gold market has been noted over the past three years, particularly following the Biden administration"s actions regarding the U.S. dollar in response to the Ukraine conflict.
In recent months, central banks have been reallocating their reserves away from the dollar and purchasing gold at an unprecedented rate. This trend has been characterized as a major movement towards dedollarization in the post-Bretton Woods era.
For further context on related economic developments, see recent developments in oil prices.
