Gold Breaks Through 3,500 Yuan with Unstoppable Momentum: Is the Sunset Bell Tolling for the Hegemony of the US Dollar?

As expected, the prices of spot gold and New York futures gold further broke through the $3,500 per ounce mark during the Asian trading session on Tuesday...

It can be said that since April 8 (when the gold price was still below $3,000), the international gold price has almost consistently crossed a "milestone" of $100 every two trading days.

Given the ongoing turbulence in the US stock, bond, and currency markets during the same period, more and more industry insiders are beginning to speculate whether the global financial system, long dominated by the US dollar, is facing deeper issues.

Alex Deluce, an analyst at GoldTelegraph, recently wrote that the global financial system is not only undergoing transformation, but the old order is beginning to collapse. The status of the US dollar as the global reserve currency is no longer so unquestionable.

For years, Deluce has been documenting the growing dangers of the West's over-reliance on financial weapons. These financial weapons include sanctions, reserve freezes, and the weaponization of the SWIFT system. Deluce believes these are not tools of diplomatic strategy but early signs of deeper problems: desperation, vulnerability, and a crumbling world order.

Deluce stated that just in the past year, driven by record central bank gold purchases, the purchasing power of the US dollar against gold has fallen by more than 35%. This is not a trend but a signal.

Meanwhile, the BRICS countries are strengthening coordination, while cracks among traditional Western allies are widening. From Europe to Asia, leaders are reassessing their risks in a no longer stable dollar system. More and more countries are realizing that true monetary sovereignty begins with one principle: zero counterparty risk—andthis path leads directly to gold.

Deluce said that as trust fades, gold is no longer just a safe-haven asset. It is becoming the foundation of a new system—a shared conclusion he recently reached in discussions with Matthew Piepenburg, a partner at VON GREYERZ.

The Safe-Haven Status of US Treasuries Is Weakening, Gold Becomes the Ultimate Safe Haven

For decades, US Treasuries have been the cornerstone of the global financial system, seen by investors and institutions as the ultimate safe haven. But this narrative is clearly fading this month. Piepenburg believes there is now a liquidity crisis, "the lubricant of this system is no longer sufficient to keep it running."

US government bonds are not providing stability during turbulent times but are instead starting to behave more like risk assets.During the market turbulence earlier this month, US Treasury yields rose when they should have fallen, underscoring the increasing fragility of the system.

"During periods of stress, US Treasury yields have actually been rising, not falling. Why are US Treasuries no longer acting as a safe haven?" Piepenburg asked and answered himself, "The answer lies in debt, which is burying the US economy."

US federal debt is expected to exceed $37 trillion, and when household, corporate, and long-term welfare debts are included, it surpasses $100 trillion. The entire system is teetering under the weight of its own commitments.

"When buried under such massive debt, even Santa Claus can't solve the liquidity crisis," Piepenburg warned. "Without helicopter money, without currency devaluation, there isn't enough lubricant to keep the wheels of this debt turning."

He added that this is why gold is being quietly remonetized by global central banks, not as a safe-haven asset but as a foundational reserve asset.

"Gold is now a Tier 1 asset. Central banks are net settling in gold. They are moving away from US Treasuries," Piepenburg said. "This is not about getting rich. It's about not getting poor."

The Rise of BRICS and Global De-Dollarization

The trend of de-dollarization has been discussed in policy circles for a long time, but after the US sanctioned Russia in 2022, it became an observable reality. Initially a statement of geopolitical power, it has now accelerated the adjustment towards a multipolar financial system.

"Since the weaponization of the dollar in 2022, 45 countries have started trading outside the dollar system. 30 countries have repatriated physical gold. This is not a coincidence but a reaction," Piepenburg said in his discussion with Deluce.

He pointed to the critical shift that occurred when the US froze the assets of the Russian central bank. For many governments, this action shattered the illusion of the dollar as a neutral global reserve. "When you weaponize the world's reserve currency," he said, "you undermine the very trust it relies on."

This shift is most evident in the BRICS countries (Brazil, Russia, India, China, South Africa). Despite the rumors about a BRICS currency, Piepenburg believes they may also trust gold more.

He noted that the BRICS plan is not to replace the dollar overnight but is undoubtedly moving away from it.

Conclusion

After their discussion, Deluce and Piepenburg concluded, "What we are witnessing now is not the end of the dollar, but the end of its hegemony."

The petrodollar system is breaking. Gold is being quietly reshaped as a strategic reserve asset.The once unshakable cornerstone of global markets—US Treasuries—is being reassessed by the very institutions that once relied on them. The implications of these changes are profound. Central banks are no longer hiding their actions... they are rapidly and decisively turning to gold.

Deluce said the real question is no longer whether gold will continue to rise, but whether the public can understand the deeper logic driving this shift.