Gold Hits $4,400 As BRICS Push De-Dollarization — What Crypto Markets Should Watch

Gold surges to $4,400 as BRICS pushes de-dollarization — what crypto markets should watch Gold climbed to an all-time high of $4,400 per ounce on December 19, 2025, capping a year in which the metal rallied more than 60% — its strongest annual performance since 1979. That milestone reflects more than just expectations for U.S. rate cuts: it’s also a direct consequence of an accelerating global shift away from the dollar, led in large part by coordinated moves from the BRICS bloc. Why this matters BRICS countries have been aggressively adding physical gold to their reserves and building infrastructure to settle trade outside dollar-denominated systems. The bloc now holds more than 6,000 tonnes of gold, and central bank buying has been relentless even as prices hit records. In 2025 alone, BRICS central banks purchased roughly 800 metric tonnes — about $105 billion at prevailing prices — and purchases continued throughout the year. For example, Brazil, Russia and China bought nearly 20 tonnes in September 2025, spending about $2.54 billion despite elevated prices. A new digital, gold-backed settlement instrument Late in 2025 BRICS introduced a gold-backed digital Unit for cross-border trade. Each Unit is pegged to 1 gram of gold and is backed by a mix of 40% physical gold and 60% BRICS national currencies. The Unit is designed to bypass dollar-dominated payment channels, representing a structural shift in how these countries plan to transact internationally. For crypto markets, this resembles a state-backed hybrid “stablecoin” — tokenized value with both a hard-asset anchor and fiat backing — and may accelerate demand for tokenized commodities and alternative rails. Concentration and accumulation Russia holds approximately 2,336 tonnes of gold in its reserves (reported as accounting for over 40% of its own reserve composition), while China has about 2,298 tonnes. Together, those two countries control roughly 74% of BRICS’ gold stockpile, underscoring how strategically concentrated the bloc’s holdings are. Reserve composition and sentiment The share of gold in BRICS’ total reserves rose rapidly — doubling from 6.4% to 12.9% by Q3 2025. The World Gold Council found that 73% of global central bankers now expect the dollar’s share of global reserves to fall over the next five years, and 43% say they plan to increase gold holdings. As Canadian investor Frank Giustra put it: “We’re now, believe it or not, in the era of hard money. If you own paper gold, you do not own gold. When the crunch comes, it will not be there.” Macro drivers and forecasts Gold’s 2025 rally has been driven by persistent central bank buying, rising geopolitical tensions, and market pricing of expected Federal Reserve rate cuts (markets were factoring in two cuts in 2026 at the time). Major banks updated their targets: Goldman Sachs raised its December 2026 forecast to $4,900/oz, Bank of America targeted $5,000, and J.P. Morgan suggested similar upside. Natasha Kaneva, head of Global Commodities Strategy at J.P. Morgan, noted that official reserve diversification into gold “has further to run,” and expects prices to push toward $5,000/oz by year-end 2026. Erosion of dollar dominance The dollar’s share of global foreign exchange reserves fell to 56.32% in Q2 2025 — its lowest level in at least three decades and down sharply from over 70% in the early 2000s. Beyond simple purchases, BRICS are building institutional infrastructure to support a multipolar system: in October 2025 they launched the BRICS Precious Metals Exchange, an independent trading platform for gold, platinum and rare earths intended to shift price discovery away from Western venues such as the London bullion markets. What this means for crypto and markets - The BRICS gold-backed Unit functions like a digital, asset-backed settlement token — a state-level analog to tokenized gold and regulated stablecoins. That could change cross-border liquidity dynamics and reduce demand for dollar-denominated settlement rails. - Persistent central bank demand for physical gold strengthens the case for tokenized gold instruments and regulated on-chain representations of bullion, potentially creating on-ramps between traditional reserves and crypto liquidity. - Declining dollar dominance and new settlement systems could increase volatility in FX and crypto markets, and create new niches for asset-backed digital instruments issued by sovereigns or consortiums. Bottom line Gold’s record at $4,400 is a signal that the global reserve landscape is shifting. As BRICS piles on physical metal and launches gold-backed digital settlement tools, the move toward de-dollarization is not just rhetorical — it’s being operationalized. For crypto participants, that opens both risks and opportunities: new state-backed digital assets and tokenized commodities may reshape cross-border payments and the role of dollar-linked instruments in portfolios. Keep an eye on BRICS’ institutional rollouts, central bank purchase flows, and how traditional bullion markets connect to tokenized markets — those developments will help determine whether gold’s new highs are a transitory spike or the foundation of a lasting structural change. Read more AI-generated news on: undefined/news