"Important news on the Arab states and other countries dumping the dollar"

Gold was en-route to record highs on Tuesday, buoyed by bullish sentiment following an article from the Independent, citing “the demise of the dollar”, in which Robert Fisk writes that Arab states, in cooperation with other nations such as Russia and China are looking to abandon the U.S. dollar for oil-dealings. The report however goes further, and again questions the tenability of the greenback as the world’s foremost important currency reserve.

Huge global currency reserves are still tied up to the U.S. dollar. Some 64 pct of global c

“These rumours are not new”, says Evelyne Winters at Goldessential. “Over the recent years, speculation increased that for instance China could be diversifying its huge dollar-denominated FX reserves into other assets such as gold”, she said.
“While the U.S. dollar would most likely avoid an apocalyptic crash just yet, this may well support gold while pressurizing the greenback, should this rhetoric gain consistency and reliability over the next few months.”

Spot gold was quoted $1,026.65 an ounce at 11.56GMT, just below a record high of $1,030.80 an ounce.
The EUR/USD pair was up 0.54 pct to 1.4727.