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Gold has been on an upward trajectory, often seen as a hedge against inflation. However, it is essential to note that its true value peaks under geopolitical stress rather than mere economic inflationary pressures. For instance, gold prices surged during the Russian invasion of Afghanistan, highlighting its function as a security asset during times of war and uncertainty.
With ongoing geopolitical tensions, particularly between the West and nations like Russia and China, the global demand for gold as a stable investment is anticipated to rise. Although the US dollar remains the dominant currency, it may inadvertently face challenges if countries increasingly seek to diminish their reliance on dollar debt, leading to broader implications for global finance.