We have a new gold price record – and it’s a double one, as the record is set in both US dollars and Polish zloty. The royal precious metal has reached over 2,600 USD and 10,000 PLN, following the US Federal Reserve’s decision to lower interest rates. And it’s still going strong!
After the US Federal Reserve cut interest rates by a whole 50 basis points last week, the price of gold soared and continues to set new records. On Monday 23rd September, the precious metal reached a new all-time high in US dollars at 2,631 USD/oz. Meanwhile, in Polish zloty, an ounce now costs over 10,000 zloty, due to the weakening of our native currency.
Poland among the leaders in buying gold
Long-term predictions published by many analysts are therefore being confirmed. Historically, gold has always benefited from interest rate cuts. At present, most of the world’s main central banks are beginning cycles of cuts, which will continue to drive the price of gold upwards. Expert predictions suggest that it will reach between 2,700 and 2,900 USD per ounce by the end of 2025.
Central banks are not only cutting interest rates, but they also continue the trend of increasing gold reserves. In this respect, Poland holds a significant position, as the National Bank of Poland is one of the world leaders in this regard. We already have 398 tons of gold in our national treasury and – according to announcements – more will be added until it represents 20 percent of our foreign exchange reserves.
BRICS to introduce a SWIFT alternative?
Among the countries accumulating gold are China, Turkey, India and Kazakhstan, countries belonging to the BRICS group. This group plans to become independent of the US dollar and thereby reduce its role in the global economy. This is part of a larger game reflected on the geopolitical map of the world, with various flashpoints being a consequence. And this is yet another factor driving demand for the precious metal.
It is worth noting that BRICS is considering introducing a new currency. This seems to be such a complicated process that its implementation is still far off. But what BRICS is already planning to do is to develop an alternative to the SWIFT system, which enables international transfers and trade, primarily through the US dollar.
Dedollarization becomes a reality
The countries in BRICS are preparing to introduce a new international exchange platform, based on their local currencies and, according to various reports, they are very close to achieving this. The system, which is an alternative to SWIFT, will be presented at the BRICS group meeting in Kazan, Russia in October. And it might not only be presented, but also implemented.
The process of dedollarization has in fact already begun, as BRICS countries have been buying gold for many years now, diversifying their reserves. They are not alone, as many countries around the world have started buying the precious metal, thus gradually reducing their reserves in USD. Although a large majority of international trade is still conducted in US dollars, dedollarization is slowly becoming a reality.
The process can surely take a long time, but Nassim Taleb, author of the bestseller “Black Swan”, wrote on the X portal about the emerging new order: “people do not see the real dedollarization, which is already underway”.
Michał Tekliński, gold market expert Goldsaver.pl, Goldenmark Group
Source: https://managerplus.pl/po-cieciach-stop-przez-fed-zloto-bije-rekordy-75294
