The BRICS nations are aggressively expanding their control over global gold reserves, targeting 65-70% ownership by 2026, up from roughly 50% today. This growth is driven by coordinated central bank gold buying, increased domestic production, strategic alliances, and the introduction of gold-backed trade systems and currency units. Major contributors include China with 2,298 tonnes, Russia with 2,336 tonnes, and India with 880 tonnes, highlighting the bloc's serious commitment to gold accumulation as a monetary strategy and as part of a de-dollarization agenda.
Market Sentiment
Investor sentiment toward gold in relation to BRICS strategies evokes an increased sense of long-term security and stability amid global financial shifts. There is growing optimism about gold’s role as a strategic reserve asset, especially as BRICS nations visibly reduce reliance on dollar-denominated assets. Market participants and central banks globally are attentive to the accelerated gold accumulation by BRICS, generating cautious interest, and anxiety among dollar-centric investors, reflecting geopolitical concerns and uncertainty over currency reserve dominance.
Past & Future Forecast
- Past: Historically, gold accumulation by sovereign states has been a hallmark of economic strengthening and shifts in global monetary power, such as China’s notable gold purchases in the 2010s preceding its economic rise. Central bank gold buying increased significantly during the post-2008 financial crisis period as trust in fiat currencies waned.
- Future: If BRICS continues on this trajectory, gold prices could experience upward pressure due to increased demand, while the global reserve currency landscape may shift with gold-backed trade systems gaining traction. Quantitative forecasts suggest BRICS control of reserves could reach 65-70% by 2026, potentially reshaping monetary policies worldwide and diminishing the dominance of the US dollar in international trade.
The Effect
The BRICS gold accumulation strategy may catalyze significant geopolitical and financial ripples, including a strategic realignment away from dollar supremacy toward a multi-asset reserve framework centered on gold. This could increase volatility in currency markets and prompt other nations to adjust reserve strategies. Risks include disruptions in gold supply-demand balance and potential short-term price spikes. The rising gold-backed trade could reduce liquidity and increase transaction costs in global markets initially, with long-term stabilization depending on policy coordination.
Investment Strategy
Recommendation: Buy
- Rationale: The strategic accumulation of gold by a major global alliance signals strong fundamental support for gold and related assets over the mid term. Investors who recognize the rising significance of gold in global reserves and de-dollarization can benefit by allocating to gold and gold-related instruments.
- Execution Strategy: Initiate phased entries in gold ETFs, mining stocks, or physical gold when technical indicators show short-term oversold conditions or support levels (e.g., using 20-day moving averages and Bollinger Bands). Additional entries can be placed on pullbacks.
- Risk Management: Use stop-loss orders around 5–8% below entry prices and maintain a favorable risk-to-reward profile. Stay alert to global macroeconomic updates and potential changes in BRICS dynamics that may influence gold demand.
This strategy aligns with disciplined institutional approaches emphasizing gradual accumulation, clear profit-taking targets near resistance zones, and flexible risk control in a complex geopolitical environment.#USNonFarmPayrollReport #USTradeDeficitShrink #币安HODLer空投BREV #BinanceHODLerBREV #USNonFarmPayrollReport #writetoearn
