The existing financial world is up for a complete overhaul as traditional money elements have started to twist, indicative of a new brewing financial era. There was a time when the US dollar was unbeatable as a global currency despite all odds, but now, the same dollar is getting outpaced, beaten, and nagged by a majority of the new currency competitors. The world is now actively dumping dollars for gold as trust in the USD continues to melt, paving the way for competitive metals and currencies to make their way to the top. Where is the current world order truly shifting towards? Let’s find out.
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Gold Is Beating the Dollar in the Global Currency Reserve Race
There was a time when the US dollar reigned supreme in all parts, all while practicing complete autonomy in global payments and trade. However, with the constant weaponization and sanctioning of the USD, the de-dollarization forces have now started to come to the surface, leaving no stone unturned to strip the USD of its current merits. Moreover, aggressive policy changes, primarily Trump’s tariff ordeal, have further weakened investors’ faith in the currency, leaving the USD to stand bleak and frail.
A perfect example of this development has been documented by the Kobeissi Letter in its recent X post. The post stated how gold has overtaken USD in the reserve asset domain. Per the portal, gold currently accounts for 23% of global reserve share, hitting its highest level in the last 30 years.
“Gold is on fire: Gold’s share of global reserves reached 23% in Q2 2025, the highest level in 30 years. Over the last 6 years, the percentage has DOUBLED.”
The portal also drew a comparison, adding how the US dollar, on the other hand, has plunged to its lowest levels, accounting for nearly 44% of the world’s reserve asset share.
“At the same time, the US dollar’s share of international reserves has declined 10 percentage points. To 44%, the lowest since 1993. By comparison, the euro’s share has decreased 2 percentage points, to 16%, the lowest in 22 years. Gold is quickly replacing fiat currencies as a reserve currency. Keep watching gold.”
This stark comparison boldly states how fiat currencies around the world have now gained a lethal competitor. At the same time, gold’s rise has always been linked to wobbly investor sentiment. With the rising geopolitical narratives, the investors continue to look towards gold as the ultimate safe haven asset, which in turn is compelling them to move away from volatile assets like USD and other fiat currencies.
Gold is on fire:
— The Kobeissi Letter (@KobeissiLetter) June 9, 2025
Gold's share of global reserves reached 23% in Q2 2025, the highest level in 30 years.
Over the last 6 years, the percentage has DOUBLED.
At the same time, the US Dollar's share of international reserves has declined 10 percentage points, to 44%, the lowest… pic.twitter.com/piY14DFDsc
Gold Price Forecast for 2025
Leading financial giants like Goldman Sachs predict gold to hit $3880 in the near future.
In addition to this, JP Morgan believes gold may easily reach $4000 by the end of the year. In a more bullish prediction, billionaire John Paulson believes gold may easily hit $5000 by 2028.
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