The new Cold War is made of gold: A weapon against the dollar

In 2024 and 2025, the world witnessed something extraordinary: gold, that ancient metal once thought to belong to kings and temples, suddenly became the new obsession of investors, governments, and even central bankers. Prices shattered all records, soaring past US$4,100 per ounce, doubling within a single year. Analysts scrambled to explain what was happening. Was this another bubble? A panic? Or something deeperperhaps the beginning of a historic financial realignment?

- by C. A. Saliya

The truth, as it turns out, lies not in the usual economic explanations of inflation or interest rates, but in two bigger and longer-lasting transformations reshaping the global financial landscape: the financialisation and the weaponisation of gold.

From Pharaohs to Financial Portfolios

Gold's appeal has always gone beyond its glitter. From the tombs of the Egyptian pharaohs to the coins of the Roman emperors, gold has symbolised permanence and power. It became the ultimate standard of trust the promise behind every paper note and national currency.

But the old "gold standard" system, which linked currencies directly to gold, had a dark side. It kept prices stable, yes, but at the cost of human suffering. When economies slowed, governments were forced to cut spending and raise interest rates to protect their gold reserves; policies that deepened recessions and unemployment. Mining itself was brutal, leaving scars on people and the planet.

When the United States finally abandoned the gold standard in 1971, many thought gold would fade into history. Yet, half a century later, gold is back-not as money in your pocket, but as a shadow currency in the portfolios of the powerful.

The New Gold Rush Fuelled by Finance, Not Pickaxes

Fast-forward to the 21st century. Gold's comeback has been powered not by miners but by markets. The launch of Exchange Traded Funds (ETFs) -financial products that let anyone buy or sell gold with a few clicks has turned an ancient commodity into a modern investment craze.

Before ETFs, buying gold meant storing heavy bars or coins. Today, a college student can own gold on their phone app. This democratisation of access has led to massive inflows, more than US$60 billion in just nine months, according to the World Gold Council.