The winds of change have now started to sweep away the financial domain, bringing in new assets to take charge of the market. This current market momentum is favoring gold, the evergreen hedge asset that has lately been suppressing the dollar’s surge, pushing it down the drain further. The central banks have bulked up on gold dramatically, giving up the dollar in the process. This scenario has pushed investors to wonder whether gold is the next breakdown asset that they should capitalize on. Is the gold price aiming for $4K in the near future?

Also Read: UBS Raises Gold Target for 2026, Says Strongest Demand Since 2011

Gold Beats Euro to Become the Second Largest Asset

Gold coins and bars
Source: Unsplash

Gold has now become the second largest asset after beating the euro, valued for its evergreen hedge appeal. Per the latest update by the Kobeissi Letter, gold now spans 24% of global reserves, the highest in the last 30 years.

In the meantime, the share of the US dollar in global reserves has shrunk to 42%, close to the levels back in the 1990s. The metal is on a spree to break records, defeating alternative currency competitors like the euro to emerge as the second most attractive asset to bet and bank on in recent times.

“Gold is replacing fiat currencies as a reserve currency. Gold’s share of global international reserves rose 3 percentage points in Q1 2025, to 24%, the highest in 30 years. This marks the 3rd consecutive annual increase. Meanwhile, the US dollar’s share declined ~2 percentage points, to 42%, the lowest since the mid-1990s. The Euro share remained roughly unchanged at ~15%. Gold is now the world’s second-largest reserve asset after surpassing the euro in 2024.”

Gold Price Prediction: Which Way Is the Metal Headed?

As per Goldman Sachs’ gold prediction, the gold price is predicted to hit $3880 by the end of 2025.

“Even so, Thomas says gold is likely to break more records this year. Goldman Sachs Research predicts gold will rise to $3,700 a troy ounce by the end of 2025 (from $3,220 on May 15) as central banks buy many tonnes of the precious metal every month. The commodity is also likely to climb as ETF investors increase their holdings in anticipation of interest rate cuts and amid growing recession concerns. In the event of a recession, Goldman Sachs Research forecasts that gold could rise to as much as $3,880 a troy ounce.”

The banking giant believes gold’s soaring popularity as the evergreen hedge asset will continue to help pump its prices up.

Also Read: Gold Could Surge 2x in 5-10 Years as Fiat Doubts Grow

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