Perhaps gold has been eyeing a new era of fiscal dominance since 2022, when it stopped trading on real rates and started trading on the dollar’s eroding hegemony. With the US dollar now comprising 54% of all reserve currencies and 58% of allocated reserves, gold’s share of all reserve assets has more than doubled since 2015, from 6% to 15%. The chart below shows that gold has been taking market share from fiat reserves, including the Dollar and the Euro. In fact, gold has now become the second largest reserve asset behind the Dollar and just ahead the Euro.

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