Global Economic Shifts: Dollar Falls, Gold Rises Amid Geopolitical Uncertainty
The current state of the global economy is marked by significant shifts, with the dollar falling to four-year lows and gold reaching record highs. These changes are largely attributed to the evolving geopolitical landscape, with the international influence of US President Donald Trump being a key factor. The trade agreement between the EU and India has marked a turning point, while the price of the dollar has fallen to its lowest level in almost four years, with the strengthening of the yen adding pressure on the US currency.
The situation is further complicated by the risks to the independence of the Federal Reserve and the growing budget deficit in the US. Investment flows remain uneasy due to Trump’s threats against various countries, including Greenland, Iran, Venezuela, and Cuba. The threat from Nordic countries to rethink their investment strategies and withdraw assets from the US stock market has prompted the US president to moderate his tone and save tariff threats for later.
Gold Prices Soar, Supported by China
The record gold price is a response to the symptoms of dollar weakness, with China accelerating its purchase of the precious metal. According to market sources, China bought over 10 tons of gold in November, which is around 11 times more than what was officially reported by the central bank, as estimated by Goldman Sachs. Similarly, in September, estimated purchases reached over 15 tons, which is 10 times more than officially reported. China’s official gold reserves have reached a record 2,306 tons, with the country’s reported total gold purchases reaching 27 tons in 2025.
The Ibex 35 has exceeded 17,800 points for the first time, adding 0.7% thanks to the banks, while the euro has reached its highest levels since June 2021. Consumer confidence in the US has fallen to the lowest level since 2014, according to the Conference Board research institute. These indicators suggest a significant shift in the global economy, with the dollar facing a crisis and gold prices soaring.
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