"Gold blasted past $5,300 per ounce last month as President Donald Trump's hawkish foreign policy and tariff threats sent investors to safer assets. At the same time, U.S. deficit spending swelled to what the Congressional Budget Office called an unsustainable $1.9 trillion, a scenario that's chipping away at the dollar's standing as the world's leading reserve currency. The confluence of these factors has some investors predicting the fall of Treasury securities as the only true global reserve."
"The investing legend forecasts a monumental shift in global reserve assets, predicting that central banks will swap dollars for the yellow metal. "The central banks around the world are buying gold," Einhorn said. "Whereas a few years ago, it was mostly Treasurys." He added that it is "becoming the reserve asset" because U.S. trade policy "is very unstable, and it's causing other countries to say we want to settle our trade in something other than U.S. dollars.""
Gold surged above $5,300 per ounce as geopolitical hawkishness and tariff threats pushed investors toward safe havens. U.S. deficit spending rose to $1.9 trillion, undermining confidence in the dollar's role as the leading reserve currency. Some investors foresee a decline in Treasury securities as the sole global reserve asset and anticipate central banks shifting reserves into gold. Central banks are buying gold and gold is becoming a reserve asset amid unstable U.S. trade policy. Despite these shifts, the dollar still comprised about 58% of foreign exchange reserves, and central bank gold purchases fell in 2025.
Read at Fortune
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