Gold’s surge erodes dollar’s shine

The relentless surge in global gold prices has weakened confidence in the US dollar, long considered the world’s safest reserve currency, with analysts warning that the greenback’s dominance in the international financial system is facing its strongest challenge in decades. Over the past year, gold prices have climbed sharply from $2,700 per ounce in October 2024 to $3,997 per ounce on Oct 31 after briefly touching $4,300 earlier in the month. The rise means buyers now need about $1,300 more per ounce than a year ago — a shift that analysts say has effectively devalued the US dollar by nearly 48 per cent against gold. While the dollar remains central to global trade and reserves, growing scepticism among central banks and investors has led to a historic accumulation of gold holdings. “Central banks are the new miners,” said Faisal Mamsa, CEO of Tresmark, a currency tracking and research firm.