The US dollar has seen a reduction in its safe-haven status due to volatile Federal Reserve rate cuts. According to NS3.AI, despite this, the dollar continues to maintain strong global demand, with 80% of foreign investors retaining their holdings. The decline in the dollar's appeal is viewed as cyclical rather than structural, with no significant trend towards de-dollarization in global asset usage.
In contrast, gold is gaining traction as a competing safe-haven asset. Its share of global currency reserves has increased to 28%, surpassing the combined holdings of major currencies such as the Euro, Yen, and Pound.