Gold to Become Main Rival to Dollar in Central Bank Reserves

Central banks are poised to increase their gold reserves, with the precious metal emerging as the primary competitor to the dollar in global holdings.

Doubts about the dollar’s stability in the near future are prompting a strategic overhaul of financial policies. This viewpoint is shared by participants in a survey conducted by the World Gold Council, reports the Financial Times.

It is noted that beyond concerns over the dollar’s fate, global regulators are wary of geopolitical upheavals and sanctions. These three factors are pushing them to make record-breaking purchases of gold. As a result, the price of the metal has risen by 30% since the beginning of the year.

Central banks highlight gold’s effectiveness during times of crisis—particularly its absence of default risk and its role as a hedge against inflation.