BRICS Expected to Continue Record-Setting Gold Rally: What's Fueling the Surge?
Precious metals, especially gold, are experiencing a significant rally led by the BRICS countries. The bloc aims to use gold to back its future currency as an alternative to the current international system, positioning gold as a cornerstone of their economic strategy. Gold settled 0.8% higher, up nine of the past 11 sessions and at a new all-time record.
As we head into next week's BRICS Summit, gold and silver are surging again. Gold has crossed over $2,700 and the December futures are currently trading at record levels. This surge is fueled by multiple factors, but the BRICS nations' ambitions play a crucial role.
De-Dollarization and the BRICS Gold Rush
As BRICS nations explore the possibility of moving away from the US Dollar and towards a gold-backed alternative, the ongoing gold rush shows no signs of slowing down. Central banks from BRICS nations are accelerating gold accumulation, boosting gold prices amid a potential de-dollarization shift. BRICS has led a growing rally around precious metals, primarily gold. The bloc is looking to use gold to back its under-development currency as an alternative to the US Dollar, driving demand and pushing prices higher.
A New BRICS Currency Backed by Gold?
A new BRICS currency, possibly gold-backed, is being considered, further fueling speculation and investment in the precious metal. This potential shift in the global financial landscape is a major catalyst for the current gold rally. Investors are increasingly seeing gold as a safe haven and a hedge against potential economic instability, particularly as BRICS nations propose an alternative system.
What to Expect in the Coming Months
Experts predict that the BRICS nations' continued commitment to gold will likely sustain the rally. Keep a close eye on the upcoming BRICS Summit for potential announcements regarding their gold-backed currency and its impact on the global gold market. The BRICS expected continued focus on de-dollarization will likely mean the record setting gold rally should continue.