Business: The recent rise in gold prices as a safe haven asset amid economic uncertainty, trade wars and rising risk appetite around the world is indicative of major changes in the global financial system. At the same time, the ever-increasing demand for gold highlights fiscal vulnerabilities, inflationary pressures and geopolitical uncertainties.

CareAge Ratings said in a report released on Thursday that traditional currencies like the US dollar and the euro are facing challenges due to sovereign risks and structural weaknesses. There is a continuous decline in confidence in these currencies. At the same time, gold has re-emerged as a politically neutral and inflation-resistant store of value.

Amidst the current global situation, central banks, especially those of the BRICS group, are reimagining their official cash reserve strategies. They are reducing their dependence on US dollar-based assets and becoming more flexible by diversifying their cash reserves, with gold playing an important role. The report said that this strategic shift not only reflects the desire for monetary autonomy, but also signals an effort to ensure protection from external shocks. It also reflects a broader rebalancing of global economic influence.

Central banks around the world are constantly maintaining distance from the dollar.
The report said that the share of the US dollar in the foreign exchange reserves of central banks around the world has been continuously declining for the last two decades. The share of dollars in the foreign exchange reserves of central banks was 71.1 percent in 2000, which has come down to 57.8 percent in 2024. This suggests that central banks are gradually moving away from the dollar. Central banks are actively diversifying their portfolios. Reducing exposure to dollar denominated assets and adding more gold as a strategic option.

Gold shines 64 percent from January 2024
There has been a huge surge in gold prices in recent months. In the global market, gold reached an average of $ 3,665 an ounce in September 2025, which is almost double what it was two years ago. In October it reached a record high of $4,000 an ounce. From January 2024 to mid-2025, gold prices have increased by about 64 percent due to strong investor sentiment and central bank buying.

Domestic demand strong despite high prices
Gold imports into India reached a 10-month high in September 2025, marking the third consecutive month of growth. This increase points to strong domestic demand despite persistently high gold prices during the festive season. CareAge Ratings said, amid the changing global financial landscape, gold has a new attraction not just as a commodity but also as a key strategic reserve asset.