Gold has shattered all previous records, soaring to $4,400 per ounce on December 19, 2025, as BRICS nations intensify efforts to reduce reliance on the US dollar and reshape the global reserve system. The rally reflects more than expectations of future US interest rate cuts—it signals a structural shift in how emerging economies are safeguarding financial sovereignty.
A key driver behind gold’s meteoric rise is the aggressive accumulation of bullion by BRICS central banks. Collectively, the bloc now holds over 6,000 tonnes of gold, with Russia and China dominating reserves.
Russia controls approximately 2,336 tonnes, representing more than 40% of its total reserves, while China holds around 2,298 tonnes. Together, they account for nearly 74% of total BRICS gold holdings, underscoring the metal’s strategic importance.
In late 2025, BRICS further strengthened gold’s role by launching a gold-backed digital settlement instrument known as the Unit. Each Unit is pegged to one gram of gold and backed by 40% physical bullion and 60% BRICS national currencies. Designed to bypass dollar-centric payment systems, the mechanism marks a major evolution in cross-border trade settlement.
Central bank demand has remained relentless despite record prices. BRICS nations purchased around 800 metric tonnes of gold in 2025, valued at nearly $105 billion. In September alone, Brazil, Russia, and China jointly bought close to 20 tonnes, investing $2.54 billion even at elevated prices. As a result, gold’s share of BRICS reserves doubled from 6.4% to 12.9% by Q3 2025.
Market sentiment is increasingly aligned with this shift. The World Gold Council reports that 73% of global central bankers expect the dollar’s share of reserves to decline over the next five years. Canadian mining investor Frank Giustra captured the moment bluntly, stating:
“We’re now, believe it or not, in the era of hard money. If you own paper gold, you do not own gold.”
Gold’s more than 60% gain in 2025, its strongest annual performance since 1979, has prompted bullish forecasts. Goldman Sachs sees prices reaching $4,900 by late 2026, while Bank of America and J.P. Morgan project levels near $5,000. As J.P. Morgan’s Natasha Kaneva noted, “The long-term trend of official reserve and investor diversification into gold has further to run.”
With the dollar’s share of global reserves falling to 56.32%, its lowest level in decades, gold’s record high reflects a broader transition toward a multipolar financial order—one where physical assets and alternative institutions increasingly take center stage.
