BRICS Gold Demand Surges as De-Dollarization Accelerates

A major monetary transition has been unfolding for over a decade, but 2025 marks the year BRICS gold demand became impossible to ignore. As confidence in the U.S. dollar softens across emerging economies, Brazil, Russia, India, China, and South Africa are intensifying their efforts to reduce dollar dependence. At the center of this shift sits one of the world’s oldest financial anchors: physical gold.

New data from the World Gold Council, Bloomberg Commodities analysts, and multiple central bank disclosures show that BRICS governments have become some of the most aggressive accumulators of gold anywhere in the global economy. This isn’t a temporary response to volatility—it’s part of a long-term strategic recalibration.

Why BRICS Gold Demand Continues Rising in 2025

A Hedge Against Dollar Dominance

For most of the modern era, the U.S. dollar has dominated global trade, particularly in oil and energy markets. But political fragmentation, sanction regimes, and shifting alliances have created a new incentive structure for emerging economies: monetary independence.

Gold offers what no national currency can:

no counterparty risk
immunity from sanctions
resilience during currency depreciation

That combination makes gold the most appealing reserve alternative for nations seeking to diversify without destabilizing their domestic financial systems. Tracking live gold prices reveals how central bank purchases consistently influence market dynamics.

China and India Lead the Accumulation Wave

China’s Strategic Expansion

The People’s Bank of China (PBoC) expanded its gold reserves by 12% in the first half of 2025, marking its fastest accumulation since 2016. Analysts widely interpret this as part of a broader strategy to:

support yuan-based commodity settlements
strengthen long-term reserves
protect domestic stability amid slowing growth and rising debt levels

China’s moves directly impact BRICS gold demand trends, as the country accounts for nearly 40% of the bloc’s total economic output.

India’s Reserve Diversification

India’s Reserve Bank has also increased purchases, pointing to inflation protection and the need for more resilient foreign-exchange buffers. Gold plays a growing role in India’s multi-decade plan to balance currency risk and support its fast-expanding economy.

For investors evaluating how gold fits into broader asset allocation, tools like our portfolio investment calculator can help model scenarios where central bank demand influences long-term pricing.

Russia Strengthens Its Gold Position

Despite ongoing Western sanctions, Russia has returned as a major buyer. As one of the world’s leading gold producers, it can accumulate reserves without touching USD-based systems at all.

An increasing share of Russia’s trade is now denominated in:

yuan
rupees
local-currency frameworks
commodity-linked barter arrangements

Gold integrates naturally into this alternative trading ecosystem, allowing Russia to maintain stability despite severe financial restrictions. This approach reinforces BRICS gold demand as a geopolitical hedge, not just an economic one.

Is a BRICS “Gold Bloc” Emerging?

Talks of a Gold-Linked Settlement Mechanism

During a June 2025 summit in Johannesburg, BRICS finance ministers revived discussions around a shared settlement system potentially anchored—at least partially—by gold. While no formal gold-backed currency exists yet, insiders report a consistent shift in attitude toward:

reducing dollar exposure
integrating intra-BRICS trade
using gold as a politically neutral reference asset

Economist Leila Narayan from the Global South Finance Forum described the trend: “We are entering an early phase of global monetary rebalancing. Gold is returning as the neutral anchor between competing blocs.”

If such a mechanism launches, it would represent the first major challenge to dollar hegemony since the Bretton Woods system collapsed in 1971.

Impact on Global Gold Prices

Growing BRICS gold demand has contributed to gold exceeding $2,120 per ounce, marking a seven-month high. Forecasts from Citibank and other major institutions suggest that continued dedollarization could keep upward pressure on prices, particularly as:

central banks shift out of U.S. Treasuries
sovereign wealth funds rebalance into bullion
emerging markets accumulate faster than mines can supply

Sovereign funds in several BRICS countries have already begun reallocating sections of their bond portfolios into physical gold and gold ETFs. This structural demand differs from speculative trading—it’s patient, strategic, and unlikely to reverse quickly.

Understanding gold’s role in your personal strategy becomes easier with resources like our gold carat calculator, which helps evaluate purity and value for physical holdings.

From Petro-Dollar to Petro-Gold?

The geopolitical ripple effects could reshape the mechanics of global energy trade. Countries such as Saudi Arabia, Iran, and the UAE—all deepening ties with BRICS—are actively exploring contracts for oil and gas priced not only in yuan but also in:

gold-linked settlement units
hybrid local-currency frameworks
non-dollar bilateral systems

Even a partial shift away from dollar-denominated energy trade would be historic, posing the first substantial challenge to the petrodollar model since the 1970s. Gold, once seen as a relic, is re-emerging as a diplomatic instrument.

What This Means for Investors

Rising BRICS gold demand signals more than market movement—it reflects a structural shift in how nations think about reserves and monetary sovereignty. For individual investors, this creates several considerations:

Gold’s role as a hedge may strengthen if dedollarization accelerates
Central bank buying provides price support during periods of weak retail demand
Geopolitical risk premiums may persist longer than traditional market cycles

Whether gold belongs in your portfolio depends on your risk tolerance, time horizon, and exposure to currency volatility. But the data is clear: institutional actors with access to the best research and longest time horizons are increasing their gold positions, not reducing them.

Conclusion: BRICS and the Gold-Centered Future

The rise in BRICS gold demand is more than a market anomaly—it signals a strategic repositioning within the global financial order. As economic power decentralizes, gold is reclaiming its centuries-old role as a neutral, durable, and universally trusted reserve asset.

If current trends continue, BRICS nations may significantly influence the next chapter of global monetary architecture—placing gold not just in their vaults, but back at the center of international finance.

Gold Demand Surges in BRICS Nations as De-Dollarization Accelerates