economy
May 8, 2026
Gold Gains Ground as Safe-Haven Asset Amid Global Uncertainty
The price of the dollar and gold have suffered from volatility. Photo: AFP / iStock
TL;DR
- Global uncertainty is leading markets and central banks to shift how they protect financial reserves.
- Gold is gaining ground as a safe-haven asset, challenging the dollar's dominance.
- Central banks, particularly in emerging economies, are increasing their gold reserves.
- The international financial system is transitioning towards a more diversified scheme, not abandoning the dollar but reconfiguring its supporting system.
- For the first time in decades, global gold reserves have surpassed dollar-denominated assets in value.
- The dollar's share in international reserves has been decreasing since the late 1990s.
- Gold offers a store of value not subject to monetary policy decisions or jurisdictional risks, unlike traditional assets like US Treasury bonds.
- High inflation, uncertain real rates, and historical levels of sovereign debt in the US have increased gold's appeal.
- The growth of gold does not signify the end of the dollar's hegemony but an evolution towards less concentrated global financial models.