Daily Gold Market Report

Reshaping Global Trade
UAE Joins BRICS in the Quest for De-Dollarization in Oil Markets

(USAGOLD – 11/30/2023) Gold prices have corrected following yesterday’s 6-month high. Gold is trading at $2,034.06, down $10.18. Silver is trading at $25.13, up 11 cents. The UAE’s shift from the US dollar to local currencies for oil trades reflects a strategic alignment with the BRICS alliance, marking a significant move away from dollar dominance in global oil markets. “Reports indicate that the UAE is eyeing potential oil and gas deals with up to 15 countries, including heavyweights like China, Russia, and Egypt, all of whom are members of the BRICS alliance and advocates of de-dollarization,” Jai Hamid reports. This decision, part of a broader trend towards de-dollarization, could reshape international trade dynamics, indicating the UAE’s role as a pivotal player in a diversifying global economy.

“The drive for de-dollarization within BRICS has led to certain complications, particularly in the realm of oil trade. The group’s endeavor to promote local currency usage in bilateral trade has revealed the limitations and inefficiencies of relying on national currencies for international transactions,” Hamid also reports. A BRICS currency could streamline international transactions, reduce reliance on dominant global currencies like the U.S. Dollar, and enhance economic integration within the bloc. This move could facilitate smoother transactions, promote mutual growth, and offer greater economic independence and sovereignty to the BRICS nations.