November 3, 2025

The world’s financial battlefield is turning shiny and serious! China is quietly draining London’s gold market, shaking the powerful grip of the US dollar. According to top macroeconomic strategist Luke Gromen, China is exploiting a long-known weakness of the dollar: the unallocated gold market in London. For years, London kept the gold trade going by issuing paper claims instead of actual metal. But now the game is changing fast. Central banks worldwide are buying gold at the fastest speed seen in over 60 years. The World Gold Council reports record-breaking official gold purchases in 2024 and 2025. While the US still holds a massive 8,133 tonnes of gold — about 76% of its reserves housed in Fort Knox and other depositories — China officially claims 2,298 tonnes. But experts believe the real figure, including secret state and military reserves, could be between 10,000 and 15,000 tonnes! So, what does this mean? Gromen warns that gold prices may have to jump to around $12,000 an ounce to restore trust because the dollar’s power depends heavily on gold. China is quietly trading more with yuan and gold instead of dollars, physically pulling bullion from London, and shifting global finance from paper promises to real, shining metal. Meanwhile, Russia and China are linking trade deals to gold, bypassing the dollar altogether. Europe struggles as energy issues and slow policies affect its standing. This quiet revolution is happening one ounce of gold at a time. As Gromen puts it, “The side that owns the gold will write the next rules of money.” This is not just about economics; it’s about control and power. China’s clear strategy is to cut dollar dependence by creating a yuan-gold trade network that backs oil and commodities. This builds trust in the yuan worldwide and offers an alternative to the dollar system. As Europe loses influence and Russia moves to gold-linked trade, China is also opening gold pricing hubs in Shanghai and Hong Kong, challenging London and New York’s old dominance. The new financial war isn’t fought with armies but with currency moves, gold reserves, and trade flows. The US is battling record debt, while China and Russia hoard gold, tilting global power away from paper money towards physical gold. Will the next world war be fought with gold? Experts say the real battle for global power is now financial—and gold might just decide who’s king of the economic jungle. This golden tug-of-war is one to watch closely as the future of money unfolds!

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Tags: China Gold, Dollar System, London Gold Market, Yuan Trade, Global Currency War, Gold prices,