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Warnings of a Global Gold Rush Amid Escalating US Trade Tensions

Waleed Farouk As US President Donald Trump escalates trade pressure by announcing his intention to impose new 50% tariffs on European imports, a US think tank has warned that these policies could push several countries—particularly emerging markets—to adopt gold as an alternative to the dollar in the global financial system. According to an opinion piece published by Kimberly Donovan, director of the Economic State Initiative at the Atlantic Council, and Maya Nikoladze, deputy director, many countries have already begun to seek safe alternatives outside the dominance of the dollar, with gold at the forefront of these alternatives, whether through physical reserves or digital instruments backed by the precious metal. "Many countries, including US adversaries, are now using gold to circumvent US sanctions and finance activities that threaten US national security," the article states. Unprecedented Rise in Central Bank Gold Purchases The authors noted that central banks around the world continue to boost their gold reserves. Data from the World Gold Council showed that purchases during the first quarter of 2025 reached 243.7 tons, a 24% increase over the average of the past five years, despite a slowdown compared to the peak of purchases in 2022. Russia is a prominent example of this trend. The Russian Ministry of Finance is believed to be purchasing gold from domestic producers in an undisclosed manner to bolster its reserves. Gold is also used in informal trade with countries such as the UAE and Turkey, according to the report. Gold-Backed Digital Innovations: Cryptocurrencies Enter the Game The issue is no longer limited to gold reserves alone. Recent trends have emerged regarding the use of gold to create stablecoins. This month, the Ministry of Finance of Kyrgyzstan announced plans to launch a gold-backed stablecoin, USDKG, in the third quarter of 2025. The USDKG will be fully backed by gold reserves worth $500 million, with a goal of reaching $2 billion. Holders of the currency will be able to exchange it for gold, cryptocurrencies, or fiat currencies, enhancing the ability of this small country—where foreign remittances account for a third of its GDP—to conduct cross-border transactions without going through the US financial system. US Concerns Over Loss of Control Over the Global Financial System The report warns that gold-backed digital currencies—especially in countries subject to sanctions, such as Russia, or those with which it has financial ties—could be used as tools to evade Western sanctions, given the lack of US oversight. The report stated that Russian interest in the USDKG system in particular could be a means of accessing technologies subject to Western restrictions, through an alternative financial system that does not pass through the dollar or US banks. A Call to Rethink US Economic Policies In concluding the analysis, the authors urged the US administration to move away from punitive policies that push countries to seek alternatives to the dollar, particularly gold, and called for strengthening financial stability by supporting economically weak countries and expanding trade and investment ties with them. read more CBE: Deposits in Local Currency Hit EGP 5.25 Trillion Morocco Plans to Spend $1 Billion to Mitigate Drought Effect Gov't Approves Final Version of State Ownership Policy Document Egypt's Economy Expected to Grow 5% by the end of 2022/23- Minister Qatar Agrees to Supply Germany with LNG for 15 Years Business Oil Prices Descend amid Anticipation of Additional US Strategic Petroleum Reserves Business Suez Canal Records $704 Million, Historically Highest Monthly Revenue Business Egypt's Stock Exchange Earns EGP 4.9 Billion on Tuesday Business Wheat delivery season commences on April 15 News Egypt confirms denial of airspace access to US B-52 bombers News Ayat Khaddoura's Final Video Captures Bombardment of Beit Lahia News Australia Fines Telegram $600,000 Over Terrorism, Child Abuse Content Arts & Culture Nicole Kidman and Keith Urban's $4.7M LA Home Burglarized Sports Former Al Zamalek Player Ibrahim Shika Passes away after Long Battle with Cancer Sports Neymar Announced for Brazil's Preliminary List for 2026 FIFA World Cup Qualifiers News Prime Minister Moustafa Madbouly Inaugurates Two Indian Companies Arts & Culture New Archaeological Discovery from 26th Dynasty Uncovered in Karnak Temple Business Fear & Greed Index Plummets to Lowest Level Ever Recorded amid Global Trade War Arts & Culture Zahi Hawass: Claims of Columns Beneath the Pyramid of Khafre Are Lies