Morgan Stanley says gold has emerged as the main challenger to the U.S. dollar as BRICS nations build bullion reserves to diversify away from dollar assets. According to this report, the move has accelerated amid trade tensions and policy shifts under Donald Trump.
The bank added, “On net, ‌we think these factors are neutral to slightly accelerating this ​transition away from the dollar. But their evolution over the near term will likely be critical in determining the extent of this shift,” highlighting uncertainty over the pace of change.
BRICS members have become the largest gold purchasers since 2022, a reaction that followed sanctions on Russia. (Ed. note: BRICS gold reserves rose by more than 30% over the past five years.)
The note states central banks in the bloc are rebalancing reserves toward high-value commodities and away from dollar-denominated assets. Emerging economies favor gold as a store of value amid geopolitical friction.
The paper also links U.S. policy moves to wider European reconsideration of dollar reliance. French President Emmanuel Macron called to “build bridges with BRICS”, signaling interest in deeper ties and alternative financial arrangements.
