BRICS to Use Gold to Challenge US Dollar

· RBI in Fix as Sovereign Gold Bond Debt Servicing Cost Rockets

· Gold at $2275 per ounce, forecast $2500 by year end

· Dh285 per g in Dubai, India market at 15% plus on Dubai

· Russia has assumed the main leadership of the bloc alongside China. Since it invaded Ukraine, the country has sought alternative financial mechanisms.

· US dollar continues a slow decline, more countries including the US itself are also turning to gold as a global reserve.

· In a world where both BRICS and GOLD are bullish, the US dollar is at risk.

[ABS News Service/08.04.2024]

The growingly popular BRICS alliance has continued to grow in numbers and support over the past year. In August 2023, the alliance agreed to expand its total members in 2024. Furthermore, the bloc announced the development of a new currency. This BRICS currency will be driven to fully ditch the US dollar in trade and usher in a new era.

Russia has assumed the main leadership of the bloc alongside China. Since it invaded Ukraine, the country has sought alternative financial mechanisms. In turn, Russia and BRICS are looking to the growing momentum of gold to back their new currency. However, as the US dollar continues a slow decline, more countries including the US itself are also turning to gold as a global reserve.

BRICS Inspiring Other Nations to Push Gold, Ditch US Dollar

In addition, many experts see Russia inspiring other countries to pursue gold-backed trade and currencies to abandon the US dollar. Countries in Africa, including Zimbabwe (which recognises Indian rupee), have an interest in BRICS’ de-dollarization initiative and, thus also an interest in gold.

With further development to come, African nations are hoping to reach the levels of economic growth as their Western and northern counterparts and may see a gold-backed currency as the next step to reach those heights. Hence why interest in the bloc around the continent has grown significantly.

In a world where both BRICS and GOLD are bullish, the US dollar is at risk. As the bloc continues to fight the greenback, the precious metal as an asset.