Regardless of whether gold prices hit an ATH or not, central banks will continue to buy gold because they see it as a safe haven that helps stabilize the economy. They buy gold to secure the economy, not to speculate like us, so they don't care about the price of gold.
But I agree with you, no matter how much the demand for gold increases, the world cannot eliminate the USD in the near future, it will still be the world's currency for the next few decades.
However, USD is still strong, accounting for 57% of global foreign exchange reserves but not as strong as you might think. USD's dominance has dropped from 66% to 57% since 2015 to date. This ratio will continue to decline in the coming years as BRICS accelerates de-dollarization.
https://wolfstreet.com/2025/01/05/status-of-us-dollar-as-global-reserve-currency-usd-share-drops-to-30-year-low-central-banks-pile-on-other-currencies-gold/
But I agree with you, no matter how much the demand for gold increases, the world cannot eliminate the USD in the near future, it will still be the world's currency for the next few decades.
However, USD is still strong, accounting for 57% of global foreign exchange reserves but not as strong as you might think. USD's dominance has dropped from 66% to 57% since 2015 to date. This ratio will continue to decline in the coming years as BRICS accelerates de-dollarization.
https://wolfstreet.com/2025/01/05/status-of-us-dollar-as-global-reserve-currency-usd-share-drops-to-30-year-low-central-banks-pile-on-other-currencies-gold/
Well, USD's dominance will decline even faster with economic uncertainty in the US due to Donald Trump's tariffs. Countries might begin to move away from the USD as some sort of retaliatory measure against the on-going trade wars. BRICS already has two of the world's strongest economic forces (Russia and China), so there's a high chance it will succeed in the long run. The bloc can simply create its very own digital currency backed by Gold, Bitcoin, or even Oil. It might even challenge the EU itself.
As for Gold, I believe it will continue to rise due to rising geopolitical conflicts and economy uncertainty. Bitcoin will eventually "catch up" due to its limited supply and increasing demand. It is better than Gold, imo (portable, predictable supply, etc). There's no telling what will happen in the future, so I'd hope for the best.
