The de-dollarization narrative is yet to die down completely. With Donald Trump busy deploying aggressive tariffs on nations, the retaliatory forces have become quite active, mulling over launching counter-tariffs on the US. At the same time, 2 leading economies have decided to ditch the US treasury bonds, ending their reliance on the US dollar to bag gold in an attempt to stabilize their economic strata. Will this phenomenon derail the US economic anatomy and usher in de-dollarization? Let’s find out.

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India and China Are Bagging Gold

gold price us dollar
Source: Finbold

India and China, the two global superpowers, have decided to depend on gold and have decided to move away from US Treasury bonds. Per a recent post uploaded by the Kobeissi Letter, India and China have lately been diversifying their holdings, moving away from the dollar in all ways. This includes a pattern in which both nations have dumped US Treasury bonds and are consistently accumulating gold at a rapid pace. This move is sparking de-dollarization fears, mounting further pressure.

Per KL, India has tripled its gold reserves in the last ten years. The post outlined how India’s gold reserves are currently valued at $70.9 billion. On the other hand, China is also aggressively pivoting towards gold, with its reserves amounting to $73.5 billion over the last 10 years.

“Gold demand in Asia has never been stronger: China’s gold reserves hit a record $73.5 billion last month. India’s gold reserves reached $70.9 billion, also an all-time high. Over the last 10 years, India’s reserves have more than tripled while China’s reserves have more than doubled. Both China and India have been diversifying out of US Treasury bonds and reducing dependence on the US Dollar. Meanwhile, global gold demand jumped 24% year-over-year in 2024 to a record $382 billion. Gold is the global hedge.”

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Trump Resumes Tariffs on Mexico and Canada: Is This the Start of a Trade War?

The US president, Donald Trump, has decided to go ahead with this decision of imposing 25% tariffs on Mexico and Canada. In one of his recent interviews, Trump shared the intent behind his aggressive tariff policy, adding how it will greatly benefit America. However, the move has sparked global trade war fears, with markets showing signs of volatility and distress.

The world markets reacted to Trump’s tariff announcement negatively, with the crypto market flashing deep red. Post the aforementioned announcement, Bitcoin fell below $92K, erasing nearly $340 million from the market.

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  • china
  • De-dollarization
  • GOLD
  • India
  • trump
  • US Economy