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Price Prediction

Gold on fire as investors get rid of the Fiat currencies

With the golden strength on Monday, the data indicates that investors are increasingly giving up Fiat currencies in favor of precious metal as a preferred backup asset.

Specifically, the global gold reserves share increased to 23 % in the second quarter of 2025, which represents the highest level in 30 years, according to what it said. Data Share the financial market suspension platform Copsy message On June 9.

The gold share has doubled over the past six years, indicating a major shift in the role of the metal for the Fiat currencies.

Meanwhile, the US dollar dominance in international reserves decreased by 10 percent to 44 %, its lowest level since 1993. This decrease reflects the increasing doubts against traditional currencies Fiat.

Likewise, the euro share decreased by two percent to 16 %, the lowest level in 22 years, highlighting the broader direction.

The beneficiaries of gold removal. Source: Copsy Message

These transformations indicate that gold quickly puts itself as a preferred backup, and it gradually replaces the global portfolios.

Gold’s Hot 2025 Run

In fact, gold was one of the best assets that performed performance in 2025, as investors turned to it as a safe haven amid the recession fears raised by trade tensions during President Donald Trump’s era.

As of the time of the press, gold was gaining strength after closing the previous week in red. The metal is traded at $ 3336, an increase of 0.8 %, and more than 27 % increased on an annual basis.

Gold ytd price graph. Source: TradingView

Meanwhile, investors are monitoring the ongoing talks between the United States and China, as the two parties aim to reach a trade agreement after imposing the definitions that rocked global markets. The London talks came on Monday after a temporary pause, as it provided some relief to investors.

If the meeting has led to a positive result, this may reduce the demand for gold in the short term. However, the metal may still find support, as some analysts remain cautious.

With the presence of many major economic indicators, including interest rates, and the survival is unconfirmed, investors will continue to search for a shelter in safe assets such as gold.

Distinctive image via Shutterstock

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