Gold is going to cost an all-time high and de-dollarization is the reason

The greenback is falling out of favor with a host of nations that are the fastest growing economies in the world given the strain the Russian invasion of Ukraine has placed on the global economic order.

Dedollarization is accelerating fast and fast; the war in Ukraine has accelerated the rate at which countries are moving away from the US dollar to circumvent Western sanctions.

The consequence was a gold rush. Global central banks are racing for gold, the demand for which reached an all-time high in 2022. This demand is also expected to continue at a healthy pace in the near future.

According to reports, in 2022 central banks purchased 1,078 metric tons of gold. It is the highest in history. This is more than double the amount purchased in 2021.

The reports added that based on this demand pattern, global central banks are expected to purchase 700 metric tons in 2024. This is not the same as 2022, but more than the rough annual average of 500 tons. In 2021, 450 tonnes of gold were purchased by central banks.

According to experts, this trend was born from the sanctions regime imposed on Russia in the aftermath of the war in Ukraine, in particular from the American decision to freeze Russian foreign exchange reserves.

Since the Western nations led by the United States have put Russia in acute economic crisis by using the dollar – the US dollar remains the mainstay of the world’s foreign exchange reserves – the only viable way ahead of countries like India, China, Russia and those in their sphere of activity. the influence was to undermine the power of the US dollar.

The obvious choice is gold.

For these reasons, UBS has predicted that gold will hit $2,100 an ounce by the end of this year, and possibly $2,200 by the end of the first quarter of 2024.

Read all Latest news, New trends, Cricket News, bollywood news,
India News And Entertainment News here. Follow us on Facebook, Twitter and Instagram.