As expected, spot gold and New York gold futures prices further rose above the $3,500/oz mark during the Asian session on Tuesday...

It can be said that since April 8 (the gold price was still below $3,000), international gold prices have almost been able to cross a "high pass" of $100 every two trading days on average.

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In view of the continued turmoil in the US stock and bond market at the same time, more and more industry insiders are beginning to wonder whether there has been deeper problems in the global financial system, which has long dominated by the US dollar?

GoldTelegraph analyst Alex Deluce recently wrote an article saying that not only is the global financial system changing, but the old order is beginning to collapse. The US dollar's status as a global reserve currency is no longer so unquestionable.

Deluce has documented the growing danger of the West's over-reliance on financial weapons for years. These financial weapons report sanctions, freezing of reserves, weaponization of the SWIFT system, etc. Deluce believes that these are not diplomatic strategic tools, they are early signs of deeper problems: despair, vulnerability, and a shaky world order.

Deluce said the dollar's purchasing power against gold has dropped by more than 35% over the past year alone, driven by record central bank gold purchases. This is not a trend, but a signal.

At the same time, the BRICS countries are strengthening coordination, while the rifts between traditional Western allies are expanding. From Europe to Asia, leaders are reassessing their risks in a no longer stable dollar system. More and more countries realize that true monetary sovereignty begins with a principle: zero counterparty risk - and this path is directed at gold.

Deluce said that as trust disappears, gold is no longer just a hedge tool. It is becoming the foundation of a new system – a common conclusion he came to in a recent exchange with VON GREYERZ partner Matthew Piepenburg.

U.S. debt hedging status is weakening gold as the ultimate safe haven

Treasury bonds have been the cornerstone of the global financial system for decades and are regarded by investors and institutions as the ultimate safe haven. But this month, that statement is clearly disappearing. Piepenburg believes there is a liquidity crisis now, "the system's lubricant is no longer enough to keep running."

Not only did U.S. government bonds not only began to act more like risky assets during turbulent times. Amid market turmoil earlier this month, U.S. Treasury yields rose when they should normally fall, highlighting the system is becoming increasingly fragile.

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"During periods of stress, U.S. Treasury yields have actually been rising, not falling. Why are U.S. Treasury no longer like a safe haven?" Piepenburg asked and answered. "The answer lies in debt, which ruins the U.S. economy."

The U.S. federal debt is about to exceed $37 trillion, and if household, business and long-term welfare debt is included, it will exceed $100 trillion, and the entire system is shaking under the weight of its own commitments.

“When buried in such a huge amount of debt, Santa can’t solve the liquidity crisis,” warned Piepenburg. “Without helicopters sprinkling money and currency depreciation, there wouldn’t be enough lubricant to keep these debt wheels spinning.”

He added that this is why gold is quietly remonetized by global central banks, not as a hedge tool, but as a basic reserve asset.

“Gold is now a primary asset. Central banks are netting gold. They are moving away from U.S. Treasury bonds,” Piepenburg said. “It’s not to get rich. It’s not to get poor.”

The rise of the BRICS and global de-dollarization

The trend of de-dollarization has actually been discussed for a long time in the policy circle. This trend has become an observable reality after the United States imposed sanctions on Russia in 2022. Originally a declaration of geopolitical forces, it has accelerated the adjustment of multipolar finance.

"Since the US dollar was weaponized in 2022, 45 countries have begun trade outside the US dollar system. 30 countries have shipped their physical gold back to their home countries. This is not a coincidence, but a reaction," Piepenburg said in a communication with Deluce.

He pointed to the key shift that took place when the U.S. freezes Russian central bank assets. For governments in many countries, this action breaks the fantasy of the US dollar as a neutral global reserve. “When you weaponize the world’s reserve currency,” he said, “you destroy exactly the trust it relies on.”

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This transformation is most evident in BRICS countries (Brazil, Russia, India, China, South Africa). Despite rumors about the BRICS currencies are rampant, Piepenburg believes that they may also trust gold more.

He pointed out that the BRICS countries' plans are not to replace the US dollar overnight, but they are undoubtedly moving away from the US dollar.

Summarize

After communicating with Piepenburg, Deluce believed that "what we are witnessing now is not the end of the dollar, but the end of its hegemony."

The petrodollar system is breaking down. Gold is quietly reshaped into a strategic reserve asset. The once unshakable cornerstone of the global market, the U.S. Treasury bond, is being re-evaluated by institutions that once relied on them. The impact of these changes is far-reaching. The central bank no longer covers up its actions...they are turning to gold quickly and firmly.

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

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