BRICS Accelerates De-Dollarization with Over 6,000 Tons of Gold in Reserve

Economic

Commodity

Summary:

BRICS nations, holding more than 6,000 tons of gold, are positioning themselves to reduce reliance on the U.S. dollar for international trade. Russia and China lead the bloc’s gold reserves...

BRICS Nations Hold Over 6,000 Tons of Gold, Strengthening De-Dollarization Efforts

The BRICS bloc (Brazil, Russia, India, China, and South Africa) now holds over 6,000 tons of gold, roughly 20-21% of global central bank gold reserves. This significant gold accumulation is seen as a strategic move to reduce the bloc's dependence on the U.S. dollar for international trade, a process known as de-dollarization.

As of the latest data, Russia owns 2,335.85 tons of gold, China holds 2,298.53 tons, and India possesses 879.98 tons. Brazil and South Africa hold smaller amounts, with 129.65 tons and 125.47 tons, respectively. Together, Russia and China control approximately 74% of BRICS’ total gold reserves. These countries have been aggressive in their gold purchases, strengthening their financial standing and minimizing the risks associated with currency fluctuations.

Gold as a Strategic Shield for De-Dollarization

The accumulation of gold is not just for wealth preservation but also serves as a "shield" in BRICS' effort to reduce reliance on the U.S. dollar in global trade. Gold helps stabilize value amidst currency volatility, offering a tangible asset base that BRICS can use to develop alternative financial systems that bypass the dollar.

Between 2008 and 2021, BRICS' share of global gold reserves surged from 5% to 22%, reflecting the bloc's growing investment in gold. This shift supports ongoing discussions about a potential BRICS currency backed by gold, providing an alternative to the U.S. dollar-dominated global financial system.

Gold Reserves Boost BRICS’ Financial and Strategic Ambitions

BRICS’ large gold reserves help the group achieve more than just financial security. The gold reserves bolster BRICS' ability to create a new monetary system based on tangible assets, further distancing the bloc from Western fiat currencies. This shift supports the group's drive to conduct trade in local currencies, bypassing the need for USD in international transactions.

Despite challenges in building the necessary infrastructure for a shared gold-backed currency, BRICS’ substantial gold holdings lay the foundation for new monetary solutions. These reserves have the potential to shift global financial power away from the U.S. dollar, enhancing the economic leverage of emerging markets over Western economies.

Path Forward: Challenges and Opportunities

While the idea of a gold-backed BRICS currency faces hurdles, such as infrastructure and coordination between member countries, the bloc's gold reserves have already established a solid foundation for alternative financial solutions. This movement toward de-dollarization is gradually altering the global financial order, presenting opportunities for emerging markets to increase their economic influence relative to Western powers.

As BRICS continues to explore direct currency settlements in trade and builds frameworks for financial independence, its growing gold reserves will play a critical role in reshaping the global economic landscape.

The BRICS bloc’s strategic accumulation of gold underscores its ongoing efforts to reduce dependence on the U.S. dollar and develop a new, asset-backed financial system. While challenges remain in fully implementing a gold-backed BRICS currency, the substantial gold reserves position the group to gradually reshape the global financial order and enhance the standing of emerging economies in the process.

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Oil Prices Steady as Market Watches Russian Supply Risks

Oil prices saw minimal movement early on Tuesday, maintaining a steady stance after a small rise in the previous session. Brent crude futures edged up by 4 cents to $67.48 per barrel, while U.S. West Texas Intermediate (WTI) crude rose 2 cents to $63.32. On Monday, both benchmarks saw gains, with Brent settling 45 cents higher and WTI up 61 cents.

The market remains focused on potential disruptions in oil supply from Russia after a recent escalation in Ukrainian drone attacks targeting Russian energy infrastructure. The attacks are seen as part of Ukraine's strategy to undermine Russia's war capabilities, and have intensified fears of supply interruptions from a major oil producer that accounts for over 10% of global oil output.

Supply Fears Push Oil Prices Up

According to Tony Sycamore, an analyst at IG, the heightened concerns over Russian supply disruptions are helping to support oil prices. The market is wary of the ongoing conflict and its potential impact on global energy markets, especially as Russia is a significant producer of crude oil and natural gas.

Another factor influencing the oil market is the anticipation of the U.S. Federal Reserve’s monetary policy meeting from September 16-17. The Fed is widely expected to cut interest rates, which could boost demand for oil as lower borrowing costs tend to stimulate economic activity, including energy consumption.

Additionally, a weaker U.S. dollar is providing some support to oil prices. The dollar index, which measures the greenback's strength against six other currencies, fell to a near one-week low, making oil cheaper for holders of other currencies. A weaker dollar typically makes commodities like oil more affordable in other markets, which can increase global demand.

Middle Eastern Tensions Add to Risk Profile

Tensions in the Middle East also contribute to the risk profile of oil supply. The Israeli military's ongoing ground offensive in Gaza, reported by Axios, adds to concerns about regional stability, which could further impact oil markets in the event of increased geopolitical conflict.

Meanwhile, a breakthrough in U.S.-China relations could also play a role in supporting oil demand expectations. U.S. and Chinese officials reached a framework agreement on transferring the ownership of the TikTok app to a U.S.-controlled entity. Previous easing of U.S.-China trade tensions has historically improved risk sentiment and boosted expectations for oil demand, as it signals more stable global economic conditions.

Oil prices are navigating a complex landscape of geopolitical tensions, supply risks from Russia, and expectations surrounding U.S. monetary policy. While the market is stable for now, ongoing concerns about energy infrastructure attacks, potential rate cuts by the Federal Reserve, and Middle Eastern conflicts could continue to drive price fluctuations in the near term.

Source: Reuters

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Trump's Push for Less Frequent Earnings Reports Gains Momentum

The U.S. Securities and Exchange Commission (SEC) announced that it is prioritizing a proposal from former President Donald Trump, which seeks to reduce the frequency of corporate earnings reports from quarterly to semi-annually. This proposal, which Trump reiterated through a social media post earlier this week, aims to ease the regulatory burden on companies and stimulate business growth by reducing the frequency of financial disclosures.

Trump's call for an end to quarterly reporting has sparked renewed debate over the need for transparency in the financial markets. While proponents argue that less frequent reporting could help companies focus more on long-term growth, critics contend that it could reduce investor visibility and weaken accountability, ultimately harming public trust in corporate governance.

SEC's Response and Regulatory Agenda

In response to Trump's proposal, the SEC confirmed it is actively pursuing the idea as part of its ongoing efforts to eliminate unnecessary regulatory burdens on businesses. The commission's focus aligns with broader discussions about how to balance corporate transparency with the goal of fostering economic growth.

The proposal would mark a significant shift in corporate reporting practices. Currently, public companies in the U.S. are required to disclose their earnings on a quarterly basis, a rule intended to provide investors with timely information about a company's financial performance and outlook.

Supporters and Critics of Quarterly Reporting

Supporters of reducing the frequency of earnings reports argue that quarterly earnings calls force companies to prioritize short-term financial results at the expense of long-term strategy and innovation. By alleviating this pressure, businesses would have more time to focus on strategic growth without the constant scrutiny of Wall Street.

On the other hand, critics of the proposal argue that quarterly reports provide essential information to investors, allowing them to make informed decisions about their investments. Reducing the frequency of these reports could lead to less market transparency, making it harder for investors to gauge the health and prospects of companies.

Next Steps for the SEC

The SEC’s involvement in this debate signals the potential for significant changes to corporate reporting requirements. However, any change to the rule would require extensive consultation with industry stakeholders, including investors, regulators, and businesses, to weigh the potential benefits and drawbacks.

As the SEC moves forward with examining Trump’s proposal, the outcome could have far-reaching implications for both companies and investors in the U.S. financial markets.

The SEC's decision to prioritize Trump’s proposal to cut quarterly earnings reports underscores the ongoing tension between regulatory oversight and the desire to reduce business burdens. While the debate continues, the SEC's actions may reshape corporate transparency and reporting practices, with significant consequences for both market participants and the broader economy.

Source: Bloomberg

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Miran's Confirmation as Fed Governor

On Monday, Stephen Miran, nominated by President Donald Trump, was confirmed by the Senate to serve on the Federal Reserve Board of Governors, just before the Fed’s crucial two-day monetary policy meeting began. The Senate approved Miran by a narrow vote of 48-47, with Senator Lisa Murkowski of Alaska being the only Republican to oppose the nomination.

Miran is set to fill the remaining term of former Fed Governor Adriana Kugler, which is set to expire in January 2026. Miran, who currently holds a key role in the White House, will take an unpaid leave from his post while serving on the Fed board. This marks the first time in the Fed's 111-year history that a sitting Fed governor is also technically an employee of the president.

A Tense Moment for the Fed’s Independence

Miran’s confirmation comes at a pivotal time for the Federal Reserve, as President Trump has consistently pressured the central bank for not cutting interest rates to boost economic growth. Trump's administration has launched an unprecedented campaign against the Fed, including personal attacks on Fed Chairman Jerome Powell and a failed attempt to fire Fed Governor Lisa Cook.

Despite this political pressure, Miran expressed during his Senate confirmation hearing that he values the independence of the Fed and intends to carry out his duties without political interference. He emphasized the importance of adhering to ethics rules and federal law while serving on the board.

Democratic Concerns Over Miran's Ties to Trump

Miran's nomination has been met with skepticism from some Democrats, who raised concerns about his ability to remain independent, given his close ties to President Trump. Miran's previous work as chair of the Council of Economic Advisers and his paper criticizing the revolving door between the White House and the Fed added to the political tension surrounding his confirmation.

During his hearing, Miran defended his position, stating that his paper only suggested reforms to the Fed and emphasized the importance of democratic oversight. He reassured senators that he would maintain independent thinking, pointing to his willingness to challenge consensus views.

Implications for the Fed and U.S. Economy

Miran's confirmation signals an ongoing shift in the Fed's dynamics as Trump seeks to reshape the central bank to better align with his economic goals. As the U.S. labor market weakens and inflationary pressures rise due to Trump’s tariffs, Miran’s role on the Fed’s Board could influence future monetary policy decisions, including interest rate cuts, which are expected in the coming months.

Miran’s confirmation is seen as a critical milestone in Trump’s efforts to assert more influence over the Federal Reserve, raising important questions about the central bank’s political independence and its role in managing the U.S. economy.

Stephen Miran’s confirmation to the Federal Reserve Board marks a significant political moment, as it follows a period of intense pressure on the central bank by the Trump administration. While Miran has pledged to uphold the Fed’s independence, his close ties to Trump and the ongoing tensions over monetary policy will continue to fuel debate about the Fed's autonomy and its ability to navigate political influence.

Source: CNN

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FastBull Featured

Daily News

[Quick Facts]

♦ S.& China reach a preliminary framework consensus on an Orderly TikTok Resolution.

♦ Ex-Hawk Bullard floats his name for Fed Chair.

♦ Trump urges end to Quarterly Reporting.

♦ US. to expand Section 232 Tariffs to additional steel and aluminum derivatives.

[News Details]

U.S.& China reach a preliminary framework consensus on an Orderly TikTok Resolution

During talks held in Madrid on 15 September, the two countries' trade delegations agreed on a cooperative framework to settle TikTok-related concerns, lower investment barriers and advance bilateral economic and trade cooperation, China's International Trade Representative and Vice Minister of Commerce Li Chenggang said.

Ex-Hawk Bullard floats his name for Fed Chair

The Fed succession battle intensified after former arch-hawk James Bullard held private talks with Scott Bessent about leading the central bank, telling advisers he would be "very interested" under the right conditions. Bullard expects the FOMC to cut the federal-funds target by 25 bp this week and hinted at additional accommodation, saying markets are "reasonable" to price in a cumulative 75 bp of easing by year-end.

In a subsequent Reuters interview, Bullard endorsed the view that tariff effects on inflation are "transitory" and unlikely to generate persistent price pressures, given import penetration's "de minimis" share of the U.S. economy. With headline PCE now at or below the trajectory officials penciled in at the June SEP, he argued the policy debate can "pivot toward the employment mandate," strengthening the case for near-term rate cuts.

Trump urges end to Quarterly Reporting

In his latest broadside against Wall Street regulation, Donald Trump declared Monday on Truth Social that, "subject to SEC approval, companies should no longer be forced to publish quarterly earnings; shifting to semi-annual reports would cut costs and let management focus on operations."

The proposal is poised to meet investor push-back, as market participants rely on timely disclosure and crave incremental transparency. Quarterly statements are typically paired with earnings calls that give analysts a platform to question senior executives.

U.S. to expand Section 232 Tariffs to additional steel and aluminum derivatives

In a notice published by the Department of Commerce, the Bureau of Industry and Security (BIS) has instituted a formal process to bring further derivatives of steel and aluminum under the tariff authority granted to the President pursuant to Section 232 of the Trade Expansion Act of 1962. The notice opens the September 2025 filing window, which commenced at 12:00 a.m. EDT on 15 September 2025 and will close at 11:59 p.m. EDT on 29 September 2025.

[Today's Focus]

UTC+8 14:00 U.K. Aug Jobless Rate

UTC+8 17:00 Germany Sep ZEW Expectations

UTC+8 17:00 Eurozone Jul Industrial Production MoM

UTC+8 20:30 Canada Aug CPI MoM

UTC+8 20:30 U.S. Aug Retail Sales MoM

UTC+8 21:15 U.S. Aug Industrial Production MoM

UTC+8 22:00 U.S. Sep NAHB Housing Index

UTC+8+1 04:30 US API Crude Draw (wk to 9/12)

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Economic

Commodity

Gold Soars as Investors Bet on Fed Rate Cuts

Gold continued its impressive rise, reaching a fresh record high of $3,715 per ounce on Tuesday, driven by expectations that the U.S. Federal Reserve will cut interest rates this week. This marks a significant move from Monday's all-time high of approximately $3,685. The rally in gold is largely attributed to market speculation that the Fed will announce a 25-basis-point rate cut and could signal further easing later this year.

With the dollar weakening to its lowest point in more than seven weeks, gold a non-yielding asset has become increasingly attractive. The dollar’s softness supports the metal's rise, as a weaker dollar enhances the appeal of commodities priced in the currency.

Fed's Rate Cut Likely, But Market Awaits Powell's Guidance

The rate cut is already priced in by the markets, but investors will also be looking closely at the Federal Reserve’s quarterly economic update and its “dot plot,” which shows the rate projections from individual Fed members. Jerome Powell, the Fed Chair, will provide further guidance on the outlook during his post-meeting press conference. Given the weak labor data and absence of major inflationary pressures, there is a growing consensus that the Fed may ease monetary policy further in the coming months, providing additional support for gold.

In addition to the Fed’s monetary policy, geopolitical and economic factors are adding fuel to gold’s rally. U.S. President Donald Trump’s continued pressure on the Fed, including efforts to influence appointments to the Federal Reserve Board, has reinforced expectations of dovish monetary policy. The increasing geopolitical uncertainty, coupled with continued central bank purchases and strong inflows into gold-backed exchange-traded funds (ETFs), has further pushed gold’s price upward.

Gold’s Record Surge Outpaces Other Assets

Gold has surged over 40% in 2025, outperforming other major assets, including the S&P 500 index. The precious metal recently surpassed its inflation-adjusted peak from 1980, reflecting its role as a safe-haven asset amid global uncertainty. Goldman Sachs has predicted that gold could approach $5,000 an ounce if just 1% of privately-held U.S. Treasuries were allocated to the metal.

As of 9:01 a.m. Singapore time, gold had risen 0.2% to $3,686.39 per ounce, following a 1% gain on Monday. Other metals saw mixed movements, with silver steadying below its 14-year high, while platinum edged lower and palladium saw a rise.

Gold’s ascent to new highs is driven by a confluence of factors, including expectations of continued Fed rate cuts, a weaker U.S. dollar, and global economic uncertainties. As investors look to hedge against risks, gold’s strong performance this year suggests that it will remain a key asset in portfolios, especially if further monetary easing materializes in the months ahead.

Source: Bloomberg

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Asia Stocks Surge Amid Fed Rate Cut Bets

On Tuesday, Asian markets surged, with MSCI's broadest index of Asia-Pacific shares outside Japan reaching its highest point in over four years, trading 0.3% higher. Both Japan’s Nikkei and Topix indexes also set fresh records. Investor optimism was fueled by expectations that the U.S. Federal Reserve will resume its rate-cutting cycle during its meeting this week, possibly hinting at further reductions in the future.

The Fed's anticipated 25-basis-point rate cut is already priced into the markets, and investors are eager to hear any guidance from the central bank regarding future rate adjustments. The upcoming "dot plot," a projection of individual members' rate expectations, will be a key point of focus, along with comments from Fed Chair Jerome Powell about the pace and extent of future easing.

Dollar Struggles as Rate Cut Bets Weigh on U.S. Currency

The U.S. dollar has faced pressure amid expectations of additional rate cuts, falling to a two-month low against the British pound. Sterling was stable at $1.3599, while the euro was trading at $1.1758, not far from its 1.5-month high. The risk-sensitive Australian dollar also saw a 10-month high at $0.6677.

Market strategist Carol Kong from the Commonwealth Bank of Australia attributed the Aussie dollar's recent outperformance to expectations of Fed rate cuts, which are viewed as positive for the global economic outlook. The easing of trade tensions has also contributed to a more favorable sentiment for risk assets.

Fed's Cautious Approach Could Determine Market Sentiment

Although futures markets have priced in a total of 127 basis points in rate cuts by July 2026, anything less dovish from the Fed this week could disappoint investors. Capital Economics' Thomas Mathews noted that the bar for a hawkish surprise is now lower than that for a dovish one, with investors expecting a cautious stance from Powell without major surprises.

Markets are also awaiting updates on U.S. economic data, such as the upcoming retail sales and unemployment claims, to further gauge the strength of the U.S. economy and its impact on future monetary policy.

Oil Prices Rise and Gold Hits New Highs

In commodities, oil prices continued their upward trajectory, with Brent crude rising by 0.25% to $67.59 per barrel, and U.S. crude gaining 0.22% to $63.44. Investors are monitoring the effects of recent Ukrainian drone attacks on Russian refineries, which have added to supply concerns.

Spot gold surged to a record high of $3,689.27 an ounce, driven by a weaker dollar and expectations of further rate cuts from the Fed.

As markets await the Fed’s decision, investor sentiment remains buoyant, with Asia stocks climbing to new heights and the dollar under pressure. The key focus will be on how the Fed communicates its next steps in the easing cycle, and whether any surprises could alter the current market trajectory. With a weak dollar and rising commodities, the outlook for global assets appears to hinge on the Fed’s next move.