2 stats show that gold's rapid rally hasn't caused dollar dominance to wane

Core Insights - The price of gold has rallied 53% this year, raising concerns about its implications for the US dollar's dominance [1][6] - Central banks are diversifying their reserves, increasingly purchasing gold, which some interpret as a sign of diminishing confidence in the dollar [2][4] - Despite the rise in gold prices, the dollar remains the dominant international currency for reserves and transactions [3][8] Central Bank Activity - Central bank buying is a significant factor driving the gold rally, with gold holdings increasing by 52% to $4.6 trillion since the end of 2024 [4] - The share of dollar reserves held by central banks has seen only a slight decrease, attributed to exchange rate fluctuations rather than a reduction in dollar holdings [5][7] Dollar's Status - The dollar is involved in 89% of all foreign exchange trades, highlighting its liquidity and continued dominance in global transactions [7] - The current gold rally does not appear to threaten the dollar's status as the primary international currency [8]