FT: Why the west should be paying more attention to the gold price rise
Gold's recent surge, decoupling from traditional factors like interest rates and inflation, reflects growing interest in alternatives to the dollar-based financial system. As geopolitical tensions rise and countries like China and Russia seek to reduce reliance on the US dollar, gold's appeal strengthens. Central banks are diversifying reserves, signalling a shift away from dollar dominance. This trend risks fragmenting the global financial system, potentially diminishing US influence and national security.
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By Mohamed El-Erian*
Buying of the precious metal reflects rising interest in alternatives to the dollar-based financial system
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