A quiet revolution is taking place in the vaults of the world’s central banks. Driven by geopolitical instability and a loss of faith in the US dollar, nations are hoarding gold at the fastest rate in 30 years, pushing the precious metal’s price to a record $4,643 (KES 603,590) per ounce.

From Serbia to China, the logic is the same: in a world where Washington weaponizes the dollar through sanctions and tariffs, physical gold is the only unfreezable asset. "We learned this the hard way," admitted Serbia’s central bank governor, reflecting a sentiment shared across emerging markets.

The "Law of the Jungle"

The shift is not just economic; it is political. With Donald Trump challenging the Federal Reserve’s independence and threatening trade wars, the dollar is no longer seen as the neutral anchor of the global system.

• The Stats: Gold now makes up over 25% of global central bank reserves, double the level of a decade ago.
• The Forecast: Analysts predict gold could breach the $5,000 mark later this year as the "Trump Trade" destabilizes fiat currencies.

Kenya’s Position

For the Central Bank of Kenya (CBK), this trend presents a dilemma. [...](asc_slot://start-slot-7)While gold offers stability, acquiring it requires precious forex. However, with the shilling stabilizing, the pressure to diversify reserves away from the dollar may grow, insulating the economy from the shockwaves of American political volatility.