Ayzal
06/12 17:30
A New Financial Era: Gold Challenges US Dollar Dominance
The global financial system appears to be undergoing a profound transformation.
For decades, the U.S. dollar was the undisputed global reserve currency, but that era may be coming to an end. A wave of change is coming, and with it a growing trend: A shift away from the dollar toward alternative stores of value, most notably gold.
Once considered unshakable, the dollar is now the subject of growing skepticism. Economic and geopolitical changes have exposed the vulnerabilities of the American currency, causing both countries and investors to rethink their dependence. Gold is increasingly seen not only as a hedge but also as a viable alternative for reserve assets.
The latest analysis by The Kobeissi Letter highlights this shift. According to the report, gold now accounts for 23% of global reserves, a level not seen in three decades. That figure has doubled in the past six years, signaling a clear trend toward diversification and a move away from fiat currencies. Meanwhile, the dollar’s share has fallen to just 44%, its lowest point since 1993. The euro isn’t doing much better, with its share falling to 16%, its lowest level in more than two decades.
This shift to gold is more than symbolic. It reflects a deeper loss of confidence in centralized currencies, especially amid increasing economic sanctions and protectionist policies. Trade conflicts, such as those that have escalated during the Trump administration, and ongoing monetary uncertainty have undermined confidence in the long-term stability of the dollar.
As geopolitical tensions continue to roil global markets, gold's reputation as a safe haven has only grown stronger. Investors are fleeing volatile currencies in search of the security that precious metals provide, reshaping the landscape of international finance.
Looking ahead, major institutions are making bold predictions for gold. Goldman Sachs predicts the metal will hit $3,880, while JP Morgan expects it to approach $4,000 by the end of the year. For the more optimistic, billionaire John Paulson sees the potential for the precious metal to hit $5,000 by 2028.
Whether these predictions will prove accurate remains to be seen, but one thing is clear: The era of the dollar's undisputed dominance is fading, and gold is no longer just a relic of the past. It is becoming a 
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