Gold Tumbles as Kremlin Signals Possible Dollar Reengagement
Gold prices turned sharply lower on Thursday after reports surfaced that Russia had floated a proposal to return to the U.S. dollar settlement system as part of a broader economic pitch to the Trump administration.
Key takeaways:
- Russia reportedly proposed rejoining the U.S. dollar settlement system.
- The memo outlines potential joint investments in natural gas and critical raw materials.
- The headline triggered an immediate selloff in gold and other safe-haven assets.
- A stronger dollar narrative weighed on precious metals sentiment.
According to the memo, the Kremlin outlined a wide-ranging economic partnership that could include rejoining the dollar-based financial system, joint investments in natural gas, and cooperation on critical raw materials. The proposal reportedly represents a potential shift in Russian policy and could reshape geopolitical and monetary dynamics if pursued.
The headline triggered immediate volatility across safe-haven markets.
Gold Reacts to Dollar System Narrative
On the chart, gold (XAUUSD) experienced a swift breakdown, plunging from above $5,060 toward the $4,900 region within minutes of the report. The move marked one of the sharpest intraday selloffs of the session, accompanied by a significant spike in trading volume.
The reaction reflects how sensitive gold remains to shifts in dollar expectations. A potential reintegration of Russia into the dollar settlement framework could strengthen the global role of the U.S. currency, reducing demand for alternative reserve assets such as gold.
Market Implications
If discussions around a dollar-system return gain traction, it could signal renewed confidence in U.S.-centric financial infrastructure. That narrative typically supports the dollar while weighing on precious metals, which often benefit from geopolitical fragmentation and de-dollarization themes.
However, it remains unclear whether the proposal will translate into concrete policy action. Until further clarity emerges, gold is likely to remain highly reactive to headlines tied to geopolitical realignment and shifts in global settlement frameworks.
For now, the sharp intraday selloff highlights just how quickly macro narratives can reshape positioning across safe-haven assets.
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Alexander Zdravkov is a person who always looks for the logic behind things. He has more than 3 years of experience in the crypto space, where he skillfully identifies new trends in the world of digital currencies. Whether providing in-depth analysis or daily reports on all topics, his deep understanding and enthusiasm for what he does make him a valuable member of the team.
