{"id":2296,"date":"2025-10-14T04:53:35","date_gmt":"2025-10-14T04:53:35","guid":{"rendered":"https:\/\/bharatnewsanalysis.com\/?p=2296"},"modified":"2025-10-14T04:53:35","modified_gmt":"2025-10-14T04:53:35","slug":"as-gold-glitters-again-what-it-means-for-the-dollars-future","status":"publish","type":"post","link":"https:\/\/bharatnewsanalysis.com\/index.php\/2025\/10\/14\/as-gold-glitters-again-what-it-means-for-the-dollars-future\/","title":{"rendered":"As Gold Glitters Again: What It Means for the Dollar\u2019s Future"},"content":{"rendered":"

 <\/p>\n

By Sanjeev Oak<\/strong><\/p>\n

Gold is gleaming at record highs once again \u2014 but its shine tells a deeper story. Behind the rally lies a growing unease about debt, geopolitics, and the dollar\u2019s durability. From the Nixon shock to the Volcker era and now de-dollarisation, gold reflects the world\u2019s anxieties in real time.<\/p>\n

In October 2025, gold prices touched a new lifetime high of $2,550 per ounce<\/strong>, up nearly 23% since January<\/strong> \u2014 the strongest run since the pandemic.
\nIn India, gold futures crossed \u20b91,00,000 per 10 grams<\/strong>, also a record, even though the rupee has remained relatively stable.<\/p>\n

Over the past three years, gold has risen nearly 60%<\/strong>, outperforming major equity indices like the S&P 500 and MSCI Emerging Markets Index during periods of global tension.<\/p>\n

\u201cEvery time the world questions the dollar, gold finds its voice again.\u201d<\/strong><\/p><\/blockquote>\n

A Familiar Pattern in History<\/strong><\/h3>\n

Each time the world has faced financial turmoil or a crisis of confidence in the dollar, gold has emerged as a refuge.<\/p>\n

In the 1970s<\/strong>, after the collapse of the Bretton Woods system<\/strong> and the US decision to abandon the gold standard, inflation spiralled across the West. Gold prices soared from $35 per ounce in 1971 to $850 by 1980<\/strong> \u2014 a 23-fold surge<\/strong> \u2014 as currencies wobbled and oil shocks battered economies.<\/p>\n

But the rally met its match in Paul Volcker<\/strong>, the newly appointed US Federal Reserve Chairman<\/strong>, who in 1979 launched an aggressive campaign to tame inflation.<\/p>\n

\u201cVolcker\u2019s sharp interest rate hikes \u2014 famously called the \u2018Volcker Shock\u2019 \u2014 restored faith in the dollar but ended gold\u2019s first great supercycle.\u201d<\/strong><\/p><\/blockquote>\n

By 1981, Volcker had pushed benchmark interest rates to nearly 20%<\/strong>, triggering a recession but anchoring inflation expectations and stabilising the greenback. Gold, which had symbolised panic over paper money, fell by almost 60%<\/strong> over the next few years.<\/p>\n

The lesson endured: whenever central banks act decisively to restore credibility, gold\u2019s fever breaks \u2014 at least temporarily.<\/p>\n

From Wall Street Collapse to Pandemic Panic<\/strong><\/h3>\n

\"\"Nearly three decades later, gold\u2019s next major rally came in the aftermath of the 2008 Global Financial Crisis<\/strong>. As the US Federal Reserve and other central banks unleashed unprecedented quantitative easing, investors fled to the perceived safety of gold. Between 2008 and 2011<\/strong>, prices surged from $700 to $1,900 per ounce<\/strong> \u2014 a 170% rise<\/strong> \u2014 reflecting fears that easy money would debase fiat currencies.<\/p>\n

Then came 2020<\/strong>, when the COVID-19 pandemic froze global supply chains and forced massive fiscal interventions. Gold breached $2,070 per ounce<\/strong>, setting a new record as central banks expanded balance sheets and investors sought stability.<\/p>\n

Today\u2019s rally, in contrast, is not driven merely by crisis, but by a slow erosion of trust<\/strong> \u2014 a geopolitical and structural unease with the dollar itself.<\/p>\n

Geopolitics and the De-Dollarisation Undercurrent<\/strong><\/h3>\n

The trigger this time is not just inflation or interest rates \u2014 it\u2019s geopolitical realignment<\/strong>. The BRICS nations<\/strong> have accelerated efforts to trade in local currencies, while central banks \u2014 from China to Turkey \u2014 are buying gold at record levels<\/strong>.<\/p>\n

According to the World Gold Council<\/strong>, global central bank purchases reached 1,037 tonnes in 2023<\/strong>, the second-highest total ever recorded<\/strong>, and are on track to match or exceed that figure in 2025.
\nChina alone has added over 300 tonnes<\/strong> to its reserves since 2022, while trimming its US Treasury holdings by nearly 20%<\/strong> over the same period.<\/p>\n

\u201cFor emerging economies, gold is no longer just an asset \u2014 it\u2019s an insurance policy against the dollar.\u201d<\/strong><\/p><\/blockquote>\n

This quiet accumulation marks a subtle vote of no confidence in the US-led financial order. As the dollar becomes increasingly weaponised in sanctions and trade wars, nations are hedging against overdependence on it.<\/p>\n

The US Debt Overhang and the Rate Pivot<\/strong><\/h3>\n

Gold\u2019s rally also reflects the mounting anxiety over America\u2019s fiscal trajectory.<\/strong>
\nThe US national debt has now crossed $35 trillion<\/strong> \u2014 about 125% of GDP<\/strong> \u2014 sparking concerns about long-term sustainability. Credit agencies have issued warnings, and repeated showdowns over debt ceilings have further eroded investor confidence.<\/p>\n

The Federal Reserve<\/strong>, meanwhile, has kept rates near 5.25\u20135.5%<\/strong>, but markets now expect a series of rate cuts starting mid-2026<\/strong> as growth cools. Falling real yields \u2014 the difference between nominal rates and inflation \u2014 tend to make gold more attractive, since its appeal lies not in interest but in stability.<\/p>\n

\u201cGold doesn\u2019t pay interest \u2014 but in a world of negative real yields, that\u2019s no longer a disadvantage.\u201d<\/strong><\/p><\/blockquote>\n

India\u2019s Paradox: A Strong Rupee, Stronger Gold<\/strong><\/h3>\n

India remains the world\u2019s second-largest gold consumer<\/strong>, after China.
\nDespite the rupee\u2019s slight appreciation in 2025, domestic prices have hit new highs because global demand has overwhelmed currency effects. Imports touched 780 tonnes in FY25<\/strong>, up 11% year-on-year<\/strong>, even as the government pushes for sovereign gold bonds<\/strong> and digital alternatives to curb imports.<\/p>\n

In rural India, gold continues to act as a store of value and credit<\/strong>, protecting households from inflation and crop uncertainties. With the festive season approaching, demand is expected to remain buoyant, keeping prices firm.<\/p>\n

What Next? Correction or Continuation<\/strong><\/h3>\n

Historically, gold rallies do not last forever \u2014 but they rarely collapse suddenly either.
\nIn 2012, after touching $1,900, gold corrected almost 30%<\/strong> as the dollar strengthened and the US economy recovered.
\nThis time, however, the rally feels structurally different<\/strong> \u2014 driven by central banks<\/strong>, not retail investors; by strategic hedging<\/strong>, not speculative frenzy.<\/p>\n

\u201cThis time, the buyers are not chasing profits \u2014 they\u2019re safeguarding sovereignty.\u201d<\/strong><\/p><\/blockquote>\n

The combination of fiscal stress, de-dollarisation, and global political uncertainty could keep gold elevated for years, redefining what \u201csafe haven\u201d means in an increasingly multipolar world.<\/p>\n

The Dollar\u2019s Future in Question<\/strong><\/h3>\n

The real story, then, is not gold\u2019s rise but the dollar\u2019s gradual erosion as the world\u2019s unchallenged reserve currency.
\nNo single alternative \u2014 not the yuan, not the euro, not cryptocurrencies \u2014 yet matches the dollar\u2019s liquidity or trust.
\nBut the psychological shift<\/strong> is unmistakable: nations are preparing for a post-dollar world<\/strong>, however far off it may be.<\/p>\n

For decades, the dollar\u2019s dominance rested on two pillars \u2014 trust and Treasury yield<\/strong>. As both come under pressure, gold is quietly emerging as the counterweight.<\/p>\n

The Silent Referendum<\/strong><\/h3>\n

Gold\u2019s rally is not merely a commodity cycle \u2014 it is a global referendum on faith in paper money.
\nEach central bank purchase, each investor shift, signals a creeping doubt in the dollar\u2019s permanence.<\/p>\n

If \u201cweaponised finance\u201d and debt-driven politics persist, gold above $2,500<\/strong> could become the new normal<\/strong>, not an anomaly.<\/p>\n

\u201cEvery ounce of gold bought today is, in essence, a vote against the future stability of the dollar.\u201d<\/strong><\/p><\/blockquote>\n

Author\u2019s Note: <\/strong>This is not just a story of glitter or greed \u2014 it\u2019s about global caution<\/strong>. Gold, once dismissed as an outdated relic, has become the quiet language through which nations express their deepest monetary anxieties.<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

  By Sanjeev Oak Gold is gleaming at record highs once again \u2014 but its shine tells a deeper story. Behind the rally lies a growing unease about debt, geopolitics, and the dollar\u2019s durability. From the Nixon shock to the Volcker era and now de-dollarisation, gold reflects the world\u2019s anxieties<\/p>\n","protected":false},"author":2,"featured_media":2297,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"colormag_page_container_layout":"default_layout","colormag_page_sidebar_layout":"default_layout","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3],"tags":[177,176,154],"class_list":["post-2296","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","tag-dollar","tag-gold","tag-rbi"],"magazineBlocksPostFeaturedMedia":{"thumbnail":"https:\/\/i0.wp.com\/bharatnewsanalysis.com\/wp-content\/uploads\/2025\/10\/gold-bar-1.jpg?resize=150%2C150&ssl=1","medium":"https:\/\/i0.wp.com\/bharatnewsanalysis.com\/wp-content\/uploads\/2025\/10\/gold-bar-1.jpg?fit=300%2C169&ssl=1","medium_large":"https:\/\/i0.wp.com\/bharatnewsanalysis.com\/wp-content\/uploads\/2025\/10\/gold-bar-1.jpg?fit=768%2C432&ssl=1","large":"https:\/\/i0.wp.com\/bharatnewsanalysis.com\/wp-content\/uploads\/2025\/10\/gold-bar-1.jpg?fit=800%2C450&ssl=1","1536x1536":"https:\/\/i0.wp.com\/bharatnewsanalysis.com\/wp-content\/uploads\/2025\/10\/gold-bar-1.jpg?fit=1280%2C720&ssl=1","2048x2048":"https:\/\/i0.wp.com\/bharatnewsanalysis.com\/wp-content\/uploads\/2025\/10\/gold-bar-1.jpg?fit=1280%2C720&ssl=1","colormag-highlighted-post":"https:\/\/i0.wp.com\/bharatnewsanalysis.com\/wp-content\/uploads\/2025\/10\/gold-bar-1.jpg?resize=392%2C272&ssl=1","colormag-featured-post-medium":"https:\/\/i0.wp.com\/bharatnewsanalysis.com\/wp-content\/uploads\/2025\/10\/gold-bar-1.jpg?resize=390%2C205&ssl=1","colormag-featured-post-small":"https:\/\/i0.wp.com\/bharatnewsanalysis.com\/wp-content\/uploads\/2025\/10\/gold-bar-1.jpg?resize=130%2C90&ssl=1","colormag-featured-image":"https:\/\/i0.wp.com\/bharatnewsanalysis.com\/wp-content\/uploads\/2025\/10\/gold-bar-1.jpg?resize=800%2C445&ssl=1","colormag-default-news":"https:\/\/i0.wp.com\/bharatnewsanalysis.com\/wp-content\/uploads\/2025\/10\/gold-bar-1.jpg?resize=150%2C150&ssl=1","colormag-featured-image-large":"https:\/\/i0.wp.com\/bharatnewsanalysis.com\/wp-content\/uploads\/2025\/10\/gold-bar-1.jpg?resize=1280%2C600&ssl=1","colormag-elementor-block-extra-large-thumbnail":"https:\/\/i0.wp.com\/bharatnewsanalysis.com\/wp-content\/uploads\/2025\/10\/gold-bar-1.jpg?resize=1155%2C480&ssl=1","colormag-elementor-grid-large-thumbnail":"https:\/\/i0.wp.com\/bharatnewsanalysis.com\/wp-content\/uploads\/2025\/10\/gold-bar-1.jpg?resize=600%2C417&ssl=1","colormag-elementor-grid-small-thumbnail":"https:\/\/i0.wp.com\/bharatnewsanalysis.com\/wp-content\/uploads\/2025\/10\/gold-bar-1.jpg?resize=285%2C450&ssl=1","colormag-elementor-grid-medium-large-thumbnail":"https:\/\/i0.wp.com\/bharatnewsanalysis.com\/wp-content\/uploads\/2025\/10\/gold-bar-1.jpg?resize=575%2C198&ssl=1","sow-carousel-default":"https:\/\/i0.wp.com\/bharatnewsanalysis.com\/wp-content\/uploads\/2025\/10\/gold-bar-1.jpg?resize=272%2C182&ssl=1","sow-post-carousel-overlay-theme":"https:\/\/i0.wp.com\/bharatnewsanalysis.com\/wp-content\/uploads\/2025\/10\/gold-bar-1.jpg?resize=360%2C476&ssl=1","sow-post-carousel-cards-theme":"https:\/\/i0.wp.com\/bharatnewsanalysis.com\/wp-content\/uploads\/2025\/10\/gold-bar-1.jpg?resize=360%2C240&ssl=1","sow-blog-portfolio":"https:\/\/i0.wp.com\/bharatnewsanalysis.com\/wp-content\/uploads\/2025\/10\/gold-bar-1.jpg?resize=375%2C375&ssl=1","sow-blog-grid":"https:\/\/i0.wp.com\/bharatnewsanalysis.com\/wp-content\/uploads\/2025\/10\/gold-bar-1.jpg?resize=720%2C480&ssl=1","sow-blog-alternate":"https:\/\/i0.wp.com\/bharatnewsanalysis.com\/wp-content\/uploads\/2025\/10\/gold-bar-1.jpg?resize=950%2C630&ssl=1"},"magazineBlocksPostAuthor":{"name":"admin","avatar":"https:\/\/secure.gravatar.com\/avatar\/907e2ea9c770f6faa637f8ea68c71753beae518b717dc7c49df834cd7acded64?s=96&d=mm&r=g"},"magazineBlocksPostCommentsNumber":"0","magazineBlocksPostExcerpt":"  By Sanjeev Oak Gold is gleaming at record highs once again \u2014 but its shine tells a deeper story. Behind the rally lies a growing unease about debt, geopolitics, and the dollar\u2019s durability. From the Nixon shock to the Volcker era and now de-dollarisation, gold reflects the world\u2019s anxieties","magazineBlocksPostCategories":["Economy"],"magazineBlocksPostViewCount":228,"magazineBlocksPostReadTime":6,"magazine_blocks_featured_image_url":{"full":["https:\/\/i0.wp.com\/bharatnewsanalysis.com\/wp-content\/uploads\/2025\/10\/gold-bar-1.jpg?fit=1280%2C720&ssl=1",1280,720,false],"medium":["https:\/\/i0.wp.com\/bharatnewsanalysis.com\/wp-content\/uploads\/2025\/10\/gold-bar-1.jpg?fit=300%2C169&ssl=1",300,169,true],"thumbnail":["https:\/\/i0.wp.com\/bharatnewsanalysis.com\/wp-content\/uploads\/2025\/10\/gold-bar-1.jpg?resize=150%2C150&ssl=1",150,150,true]},"magazine_blocks_author":{"display_name":"admin","author_link":"https:\/\/bharatnewsanalysis.com\/index.php\/author\/admin\/"},"magazine_blocks_comment":1,"magazine_blocks_author_image":"https:\/\/secure.gravatar.com\/avatar\/907e2ea9c770f6faa637f8ea68c71753beae518b717dc7c49df834cd7acded64?s=96&d=mm&r=g","magazine_blocks_category":"Economy<\/a>","jetpack_featured_media_url":"https:\/\/i0.wp.com\/bharatnewsanalysis.com\/wp-content\/uploads\/2025\/10\/gold-bar-1.jpg?fit=1280%2C720&ssl=1","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/bharatnewsanalysis.com\/index.php\/wp-json\/wp\/v2\/posts\/2296","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bharatnewsanalysis.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bharatnewsanalysis.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bharatnewsanalysis.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/bharatnewsanalysis.com\/index.php\/wp-json\/wp\/v2\/comments?post=2296"}],"version-history":[{"count":2,"href":"https:\/\/bharatnewsanalysis.com\/index.php\/wp-json\/wp\/v2\/posts\/2296\/revisions"}],"predecessor-version":[{"id":2300,"href":"https:\/\/bharatnewsanalysis.com\/index.php\/wp-json\/wp\/v2\/posts\/2296\/revisions\/2300"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bharatnewsanalysis.com\/index.php\/wp-json\/wp\/v2\/media\/2297"}],"wp:attachment":[{"href":"https:\/\/bharatnewsanalysis.com\/index.php\/wp-json\/wp\/v2\/media?parent=2296"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bharatnewsanalysis.com\/index.php\/wp-json\/wp\/v2\/categories?post=2296"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bharatnewsanalysis.com\/index.php\/wp-json\/wp\/v2\/tags?post=2296"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}