Jefferies analysts pointed out in their 2026 outlook report that the US dollar's dominant position in global foreign exchange reserves may face gradual weakening, partly due to the tariffs imposed by Trump on trading partners. “The recent trade war has damaged the US dollar's position as a major reserve currency,” the report said. Although the US dollar will maintain its role as a core reserve currency in the short term, “there may be a slow and continuing trend of de-dollarization.” Analysts warned that as geopolitical and trade frictions intensify, central banks and investors may begin to question the risk of concentrating all reserves in the US dollar and seek diversified allocations. “Investors may reevaluate strategies that rely too much on the dollar and increase their holdings in favor of other assets.” Jefferies believes that in this de-dollarization process, gold will be the main beneficiary.

Jefferies analysts pointed out in their 2026 outlook report that the US dollar's dominant position in global foreign exchange reserves may face gradual weakening, partly due to the tariffs imposed by Trump on trading partners. “The recent trade war has damaged the US dollar's position as a major reserve currency,” the report said. Although the US dollar will maintain its role as a core reserve currency in the short term, “there may be a slow and continuing trend of de-dollarization.” Analysts warned that as geopolitical and trade frictions intensify, central banks and investors may begin to question the risk of concentrating all reserves in the US dollar and seek diversified allocations. “Investors may reevaluate strategies that rely too much on the dollar and increase their holdings in favor of other assets.” Jefferies believes that in this de-dollarization process, gold will be the main beneficiary.