May 1, 2025 :- As geopolitical and economic tensions intensify between the United States and China, the BRICS alliance—comprising Brazil, Russia, India, China, and South Africa—is emerging as a potential force behind a dramatic surge in gold prices. Analysts now suggest the yellow metal could reach as high as $6,000 per ounce, fueled by ongoing U.S. trade policy actions and the BRICS countries’ shift away from the U.S. dollar.
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Trade War Heats Up
The U.S. has recently imposed a 145% tariff on Chinese exports, a move that has rattled global markets and drawn sharp criticism from Beijing. In retaliation, BRICS nations are reportedly accelerating plans to reduce dependency on the dollar in international trade, focusing instead on local currencies and asset-backed systems—particularly using gold as a hedge.
Gold as a Safe Haven
Frank Holmes, CEO of U.S. Global Investors, stated that rising tariffs and inflationary pressure on the U.S. dollar could create the perfect storm for gold. “If tariffs rise 25%, the dollar could weaken by a similar percentage, and gold prices could realistically surge to $6,000 during Trump’s presidency,” he explained.
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Central banks, particularly in China and Russia, have been steadily increasing their gold reserves. According to the World Gold Council, BRICS nations accounted for over 60% of central bank gold purchases in the first quarter of 2025.
BRICS De-Dollarization Strategy
The BRICS coalition has long championed the idea of moving away from dollar-dominated trade. The proposed BRICS currency, which some speculate may be backed by gold or other commodities, could further increase demand for the precious metal. This aligns with recent comments by Russian officials, who confirmed that talks are underway to establish a new trade settlement mechanism rooted in physical assets.
Market Reactions
Gold futures have already responded positively, breaching the $2,400 mark in April. Some investment firms are revising their 12-month targets, citing “structural shifts in the global financial system.” If BRICS continues on its current trajectory and U.S.-China relations deteriorate further, gold’s march toward $6,000 may no longer be just a long-term theory—it could become a near-term reality.
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