Trump Can't Stop This: BRICS Buys 60,000 Ounces of Gold To Hammer USD

BRICS member China is accumulating gold for 10 months straight and diversifying its reserves to strike at the USD. The People’s Bank of China (PBOC) purchased 60,000 ounces of gold in August worth $215 million. Overall, China’s gold reserves have increased to $253.84 billion, making it 7.64% of its total foreign exchange reserves. The Communist country now holds 74.02 million ounces of gold in its reserves, according to the latest data from the country’s State Administration of Foreign Exchange.

Also Read: China Releases BRICS Trade Index Showing Record Gains Since 2009

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Source: Freepik.comNot just China, other BRICS countries like India, Brazil, Russia, and South Africa have been steadily accumulating gold. The strategic gold accumulation by BRICS is a response targeting the USD due to geopolitical uncertainty. “China released data today showing that its central bank has increased its gold holdings for the tenth consecutive month,” said Mohamed El-Erian, Allianz chief economic advisor. He added that the development is “part of a broader risk diversification strategy,” with central banks increasingly favoring gold.

“China released data today showing that its central bank has increased its gold holdings for the tenth consecutive month,” **“part of a broader risk diversification strategy,”**Also Read: BRICS Virtual Meet: 7 Key Takeaways From the Event

Also Read: BRICS Virtual Meet: 7 Key Takeaways From the EventThe latest data from the International Monetary Fund (IMF) states that the central banks of BRICS countries have increased their gold purchases fivefold since Russia’s invasion of Ukraine in an effort to cut ties with the US dollar. Even Donald Trump, who championed the ‘America First’ ideology, is unable to stop BRICS in this position. Developing countries are reducing US dollar-denominated assets like Treasuries and bonds in their reserves.

The gold-buying streak pushed the XAU/USD index to reach a high of $3,650 on Wednesday. It soared nearly 25 points in the day’s trading session by rising 0.65%. BRICS gained the most from the gold’s surge while cutting back on the USD-denominated debt. Speculations are rife that BRICS might back their upcoming currency with gold to challenge the US dollar. While Trump is targeting the alliance via trade, they are taking a different route to dim the lights on the US dollar.