Gold is on fire. Over the past year, prices have skyrocketed nearly 27%, shattering records and soaring past $3,000 per ounce.

The driving force? Central banks loading up on gold at an unprecedented pace. According to the World Gold Council, global central bank gold purchases hit an all-time high in 2024, with a staggering 1,045 tons added to reserves. This marks the third consecutive year of aggressive gold buying. But while central banks played a pivotal role in 2024’s gold rush, an even bigger factor is set to take over in 2025: the collapsing U.S. dollar.¹

Analysts at TD Securities warn that currency depreciation will be the dominant force behind gold’s surge in the coming year. “Central bank buying fueled gold’s 2024 rally, but 2025 will be all about the weakening dollar,” they stated. And the trend is already in motion. The U.S. Dollar Index (DX-Y.NYB), which tracks the greenback against six major currencies, has plunged 6% since hitting a two-year high in January 2024.²

The reasons for the dollar’s decline are clear: skyrocketing debt, persistent inflation, and geopolitical instability. A weaker dollar makes gold even more attractive to international buyers, pushing demand, and prices, even higher. This inverse relationship between gold and the dollar is well-documented. Historically, when confidence in the dollar crumbles, gold shines. Gold has always been viewed as a store of value that holds its worth better than paper currency in times of economic uncertainty.

As the World Gold Council noted in their February review, "Gold hit new highs during the month, supported by a weaker US dollar, extending its y-t-d gains to 9%.³

A Global Shift: Gold vs. U.S. Treasuries

Central bank gold buying and the weakening dollar are interconnected, both tied to a larger trend—declining global confidence in U.S. Treasuries. The $28.5 trillion U.S. Treasury market has long been a cornerstone of global finance, considered one of the safest investments. But that narrative is changing fast. After 15 straight months of buying Treasuries, foreign investors, including central banks, have reversed course. They've been selling off long-term Treasuries for three consecutive months. The world is witnessing the acceleration of de-dollarization in real time, particularly among the BRICS+ alliance.⁴

The shift is driven by growing distrust in the U.S. dollar as a reliable reserve asset. Central banks worldwide are moving to insulate their economies from U.S. financial leverage, such as sanctions, asset freezes, and tariffs. Canada, for example, has emerged as the largest net seller of U.S. Treasuries, signaling a major reset in global financial strategy.

Foreign governments are dumping Treasuries and cutting their reliance on the dollar, seeking a safer alternative. Their answer? Gold. With U.S. debt spiraling out of control and rising inflation eating away at purchasing power, gold is rapidly replacing Treasuries as the go-to store of value.

Gold: The Ultimate Win-Win

Gold presents an unparalleled opportunity. Whether the dollar strengthens or weakens, gold remains a winning asset. In this shifting global economy, new rules are emerging. If the dollar stages a comeback, foreign buyers, especially in Asia, will scoop up more gold to hedge against weaker local currencies. When interest rates are high and the dollar is strong, central banks dump U.S. Treasuries to protect their own currencies.

If the dollar keeps falling, U.S. investors will pour into gold as a hedge against inflation and financial turmoil. It’s a classic "heads I win, tails you lose" scenario. Gold delivers stability, security, and long-term value no matter what happens to the dollar.

Conclusion

With gold surging and the dollar on shaky ground, now is the time to protect your retirement savings. A Gold IRA from American Hartford Gold allows you to put physical gold within your retirement account, shielding your wealth from currency devaluation and market uncertainty. You can position yourself for financial security with gold today. Contact American Hartford Gold at 800-462-0071 to learn more.

_______________
Max Baecker is the President of American Hartford Gold (AHG), the nation’s largest retailer of precious metals. He leads American Hartford Gold’s mission to help clients achieve long-term financial security with physical gold and silver.

Under his guidance, American Hartford Gold has delivered billions of dollars’ worth of precious metals to thousands of satisfied clients.

Max's dedication to upholding American Hartford Gold's industry-leading standards is reflected in its accolades. American Hartford Gold has made numerous high-ranking appearances on the prestigious Inc. 5000 List of America’s Fastest-Growing Private Companies. AHG holds an A+ Rating from the BBB and a 5-Star Rating on Trustpilot from thousands of American Hartford Gold reviews. American Hartford Gold is the only precious metals company trusted and recommended by Bill O’Reilly.

AHG offers investment-grade gold and silver coins and bars at competitive prices. Clients also benefit from its buy-back commitment with no back-end fees. To learn more, visit American Hartford Gold.

Notes:

1. https://uk.finance.yahoo.com/news/pound-gold-oil-prices-commodity-currency-102346774.html

2. https://www.kitco.com/news/article/2025-03-19/gold-rally-dynamics-have-shifted-again-currency-depreciation-now-main

3. https://www.gold.org/goldhub/research/gold-market-commentary-february-2025?utm_source=chatgpt.com

4. https://www.livemint.com/market/foreign-buyers-dump-billions-in-longterm-us-treasuries-canada-was-a-big-seller-11742561440087.html