As the BRICS bloc looked to continue buying the metal, the United Arab Emirates (UAE) has become the second-largest gold hub in the world. Indeed, the country is looking to advance its position and eventually be the top “alternative” to traditional gold trade centers, according to a new report.
Throughout 2024, the BRICS bloc has ramped up its efforts to acquire the asset. Many believed it was connected to its continued de-dollarization efforts, as it sought to lessen reliance on the US dollar. Those efforts have paid off, as one of its member nations has become a key player in the global gold trade market.
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UAE Looks to be Global Gold Hub Amid BRICS Currency Shift
This year had proven to be one of the biggest years for gold as an investment. Since December of 2023, the metal has continually set all-time highs and landmark price records. The highest mark was set on October 30th, when gold was trading at $2,789, due in large part because of central bank accumulation.
One of the biggest endorses of a gold acquisition strategy was the BRICS bloc, which has now seen the UAE emerge as one of the largest gold hubs in the world. Indeed, the country has set out at the forefront of the asset’s gold trade. Specifically, it most recently surpassed Longodn to be the second-largest gold trade center in the world.
Also Read: BRICS Countries Are Now Rejecting De-Dollarization?
“We have seen historic shifts in the precious metals market, driven by Western sanctions that have forced record buying of gold by central banks and a rethink by many countries when it comes to their reliance on the US dollar,” DMCC CEO Ahmed Bin Sulayem said in a recent statement.
“We are seeing a new gold corridor form across Asia, with Dubai at its center,” he added. However, there are rumblings that the BRICS bloc could seek to shift yet again. This time, away from de-dollarization. Amid Trump’s election, alliance leaders have walked back anti-greenback sentiments. That could proceed a massive geopolitical shift in 2025.
For the last two years, gold was viewed as key in the BRICS bloc de-dollarization efforts. However, those plans are now put into question. There were rumors that the alliance was developing its very own alternative currency backed by gold. Yet, the 2024 BRICS Summit came and went with no update on such a project. All eyes will be on the bloc, and how they move forward economically.