The global trend of "de-dollarization" boosts the rise of precious metals and Bitcoin, analysts say gold prices could theoretically rise to $8,500

Gold and Bitcoin have recently reached record highs, indicating that global investors are accelerating their shift away from major reserve currencies like the US dollar, turning instead to safe-haven alternatives represented by gold and crypto assets. According to analysis from Eurizon SLJ Capital, this trend stems from the ongoing monetary overexpansion by central banks and the expansion of government deficits, leading to a decline in market trust in the credit of fiat currencies. This week, spot gold first broke through the $4,000 per ounce mark, while Bitcoin also set a new historical high over the weekend. Eurizon strategists pointed out that the simultaneous rise of these two asset classes is "clearly driven by common factors," namely the "crazy money printing" by reserve currency issuing countries, pushing funds to seek new means of value storage. The institution predicts that if the proportion of gold holdings by central banks matches that of US dollar reserves, gold prices could theoretically rise to $8,500. Global fiscal easing and surging debt are exacerbating concerns over currency depreciation. Eurizon stated that the short-term rebound of the US dollar is merely due to the weakening of the euro and yen caused by domestic political and fiscal risks, and in the long term, the dollar will continue its downward trend. The report noted that emerging market central banks have become more vigilant about the risk of reserve assets being frozen since the Russia-Ukraine conflict, gradually reducing their reliance on the dollar and euro, and instead increasing their holdings of gold and other non-traditional assets. "Crypto investors embrace digital currencies due to distrust in centralized financial systems, while central banks seek a safe new anchor in 'de-dollarization.'" Matthew Piggott, head of gold and silver at Metals Focus, stated: "The current macroeconomic and geopolitical environment is extremely favorable for gold as a safe-haven asset, and concerns over other traditional safe-haven assets have further amplified the attractiveness of gold prices. Unless there is a significant negative catalyst, we expect gold prices to maintain an upward momentum until 2026 and potentially challenge $5,000." Additionally, Paul Cooper, global head of commodities research at Standard Chartered Bank, pointed out that the silver market continues to experience tight supply and demand, with rising leasing rates, New York Mercantile Exchange inventories hitting record highs, and strong demand during India's festival season, leading to significant capital inflows into the silver market through exchange-traded products (ETPs), providing support for silver prices. Notably, palladium prices surged nearly 10% on Wednesday, marking the largest single-day increase since May 2023, rising for three consecutive days to $1,482.65 per ounce. Analysts say that as gold breaks historical highs and silver soars, investor enthusiasm for precious metal safe-haven assets is forming a new wave of "safe-haven rush," while traditional reserve currencies are increasingly losing their appeal