International News
Gold, ‘Non-traditional reserve currencies’ eat into U.S. dollar’s reserve dominance: Wolf Richter
Gold and other reserve currencies – but not the euro or renminbi – are steadily eroding the U.S. dollar’s position as the world’s preeminent reserve asset, according to Wolf Richter, analyst and publisher of Wolf Street.
“The status of the US dollar as the dominant global reserve currency has helped the US fund its twin deficits, and thereby has enabled them: the huge fiscal deficit every year and the massive trade deficit every year,” Richter wrote in an article published Monday. “The reserve currency status comes from other central banks (not the Fed) having purchased trillions of USD-denominated assets such as Treasury securities, other government securities, corporate bonds, and even stocks. The dollar status as the dominant reserve currency has been crucial for the US, and as that dominance declines ever so slowly, risks pile up ever so slowly.”
Total holdings of USD-denominated securities by other central banks (not the Fed) fell by $59 billion to $6.63 trillion at the end of 2024, from $6.69 trillion at the end of 2023,” he noted. “And the dollar’s share declined to 57.8% of total allocated exchange reserves at the end of 2024, the lowest since 1994, down by 7.3 percentage points in 10 years, as central banks have been diversifying their holdings for years to assets denominated in currencies other than the dollar, and into gold.”
International News
US Consumers Are Cutting Back Sharply On Discretionary Items Like Jewellery
McKinsey’s findings indicate : 43% of US consumers plan to spend less on jewelry this holiday season, while 39% expect to spend the same, and only 18% plan to spend more. This yields a net spending intent of -25%.
According to McKinsey & Company’s latest consumer sentiment research (surveyed July 29–August 5), US holiday budgets remain stable, but consumers are cutting back sharply on discretionary items like jewelry.
- Jewellery Spending Pullback: 43% of US consumers plan to spend less on jewelry this holiday season, while 39% expect to spend the same, and only 18% plan to spend more. This yields a net spending intent of -25%.
- High Category Risk: Accessories (-30%) and home decor (-32%) recorded the lowest net spending intent across 22 discretionary categories.
- Overall Holiday Budgets: Across all categories, 47% of consumers plan to match last year’s spending, 23% plan to spend more, and 21% plan to spend less.
- Bright Spots & Demographics: Gen Z consumers show higher planned spending on jewelry and accessories relative to older generations.
Bain & Company forecasts
- Total US holiday sales to rise 4.5% year-over-year to a record $1.016 trillion.
- In-store sales are projected to grow 2.5%, while non-store (e-commerce) sales are expected to jump 9%.
- Half of this nominal growth is driven by inflation rather than unit volume.
While macro retail figures point to growth, McKinsey’s findings indicate jewelry retailers face an intense battle for market share against apparel, electronics, and travel. Success will depend on capturing a increasingly selective consumer base.
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National News3 hours agoPNGS Reva Diamonds Unveils Official E‑Commerce Platform, Marking A New Digital Chapter In Omnichannel Luxury
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National News7 hours agoGJC Is Concerned and Disappointed With The Introduction Of MDR On UPI Merchant Transactions Above ₹2,000
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National News7 hours agoImposition Of MDR On UPI Transactions Imposes Additional Financial Burden On Gold Trade Sector — KGSMA
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National News7 hours agoPalmonas Celebrates Its 101st Store, Marking A Journey Built On Trust, Community and A New Way Of Experiencing Jewellery
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