Central Banks Accelerate De-Dollarization with Surging Gold Demand as Bullion Profits Soar 140%

Central banks worldwide are intensifying their de-dollarization push by aggressively accumulating gold reserves, the World Gold Council (WGC) reported today, signaling a historic shift away from the US dollar. Since the buying spree began in 2022, spot XAU/USD has surged nearly 140%, delivering billions in profits to developing nations while highlighting the escalating costs of holding dollars amid rising US national debt and inflation. With America's economic policies threatening global stability, diversifying into gold is now the only viable safeguard for sovereign reserves.

De-Dollarization: 84% of Surveyed Central Bank Officials Expect Gold’s Share to Rise

The WGC’s survey involved officials from 76 banks, and 84% of the officials said that gold accumulation will keep increasing. Also, 74% of the respondents anticipate the share of the US dollar to decline in the central bank reserves. The development highlights that de-dollarization is rising, with the US dollar being given less importance over gold.

Apart from concerns about debt stability, emerging economies are also worried about the independence of the Federal Reserve. US President Donald Trump is embroiling the Federal Reserve in politics, removing its independent shield. Trump has also been an opponent of de-dollarization, warning countries of serious consequences if they ditch the US dollar.

Shaokai Fan, global head of central banks and head of the Asia-Pacific at the World Gold Council, told Nikkei Asia. De-dollarization might enter full speed after Trump’s tenure comes to an end in January 2029. Their gold investment might have paid off further in the next three years.