Central banks across the world have started purchases massive amounts of gold with a total of 145.5 tons of gold bought so far this year. Analysts believe the gold-buying move of world governments could largely reduce heavy dependence on the world's largest economy, the United States.
Political and legal analyst Darisu Shahtahmasebi wrote in an op-ed for Russian outlet RT International that the recorded global gold purchases as of this year indicate a hike of 68 percent compared to purchases last year.
Russia's Central Bank is the forerunner in gold purchases with 274.3 tons obtained last year. Other countries that made significant gold purchases are Colombia, Turkey, Serbia, Kazakhstan, Qatar, Ecuador, and the Philippines, a recent addition to the gold-buying spree.
Shahtahmasebi noted that most of the countries seemingly "hoarding" gold are those that have had previous or existing rows with the White House. "Most interesting, however, is the class of countries that we find is turning to hoard more and more gold, many of which are deemed to be adversaries of Washington," he wrote.
Other analysts pointed out that the ongoing gold-purchasing spree could indicate weakening confidence and reliance on the United States, even if it is still the largest economy and the biggest trading partner for many countries.
On Thursday, multiple outlets reported that a number of currencies saw a hike to stand against the U.S. dollar, further igniting talks about weakening confidence on what was once a world-dominating currency.
The British Pound and the Euro stood rose against the U.S. dollar on Thursday amid employment data that disappointed global markets, Currency News Centre reported.
The ADP Payroll revealed on Wednesday that there were only 27,000 jobs added in the American job market for the month of May, highly disappointing expectations from industry analysts across the globe.
The weakening of the U.S. dollar against European currencies didn't come as a surprise after the ADP findings were released. This is not to mention that the U.S. Federal Reserve had been dropping hints about potentially cutting American rates in the coming weeks or so.
Kitco News further reported that gold prices have been beating the U.S. dollar for three months in a row. The United States' purchasing power, on the other hand, declined by 85 percent from 1970 to 2018, according to Degussa analysts.
Gold has been rising within the same period, with an average hike of 5.9 year-on-year. Many experts believe that the uptrend in gold trading and gold purchases could well be an indication of a weakening U.S. dollar amid global trade tensions that it often initiates.
