Loading ...What we are seeing is a false apparent strength of the USD. The excessive currency creation, low-interest rates, and bailouts guaranteed CPI inflation and it was already becoming apparent before the Ukrainian-Russian conflict. The back-firing of the sanctions against Russia only served to increase the pressure on the supply of raw materials and therefore create further pressure on the CPI. The theft of Russian funds by Western banks has also served to make other countries more aware of the vulnerability of their Western-held funds and encourages them to move further away from the USD system. The Bric+ group is strengthening their ties and soon will be a viable alternative to the Western financial system. The USD is definitely close to losing its sole reserve currency status.
I don’t know when gold will finally break up, but some of the factors above will definitely accelerate the process. You can bet that Russia is buying more gold as one way of keeping its Ruble from getting too strong (selling Rubles for gold). In the future, their gold will act as a support for the Ruble.