Gold Bullion Has Become a Hedge Against a ‘Weaponised’ US dollar for China, Russia

Gold Bullion weaponized as a hedge US dollar

Amid an escalating trade war, both Beijing and Moscow have diversified away from US dollar holdings to reduce Washington’s economic leverage and minimise future exposure to tariffs and sanctions. For them, and others, gold bullion remains a safe haven.

Gold bullion Key takeaways

  • The recent spike in gold prices to over US$1,500 per troy ounce – the highest since a peak of almost US$1,900 in 2011 – is partially a response to the heightened enmity between the US and China.
  • Russia and China have continued to aggressively buy gold, with Russia remaining the largest buyer in the world, having reduced its US Treasury holdings.
  • Both China and Russia have been diversifying away from US dollar holdings to reduce American economic leverage and minimise future exposure to tariffs and sanctions.
  • Gold bullion remains the perennial safe-haven asset from the macroeconomic level down to retail investments.

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