The dollar weakened as the Fed’s preferred inflation gauge suggested price pressures may have peaked, impacting near-term moves in gold and currencies.

He notes the dollar-centered system has shown only minor deviations over the last ten years, with possible shifts remaining unlikely in the near term.

While acknowledging potential long-term changes, he stresses that the recent decade has seen limited movement away from dollar dominance.

Markets are reacting to U.S. tariffs and data suggesting inflation pressures may have peaked, influencing currency and commodity movements while the dollar’s role remains predominant.

The IMF’s chief economist says that despite shifting trade relationships and unilateral U.S. tariffs, the U.S. dollar remains the anchor of international trade, banking, and central bank reserves.

In his view, over the past decade there has been very little movement away from a dollar-centered world, though he concedes future changes could occur.

He also emphasizes that the dollar remains at the heart of the global financial system, even as trade patterns evolve.

Gold prices climbed after a softer dollar and signs that U.S. rate hikes may be cooling, with spot gold around $4,083 per ounce amid a fourth weekly decline.

Gold has risen in part due to ETF-driven demand and gold holdings by stablecoin issuers, though central banks have not been buying gold in scale, indicating broader price drivers beyond a move away from the dollar.

The remarks come as Gourinchas, who will soon leave the IMF to return to teaching, comments on the resilience of the dollar-centric global financial system amid geopolitical and policy shifts.