LONDON, October 21. /TASS/. Growth of gold prices demonstrates a transformation of global economy and threatens the dollar-based financial system, President of Queens’ College, Cambridge University, Mohamed El-Erian wrote in an opinion piece for Financial Times.

"As it develops deeper roots, this risks materially fragmenting the global system and eroding the international influence of the dollar and the US financial system. That would have an impact on the US’s ability to inform and influence outcomes, and undermine its national security," the expert said. Over the past year the price of gold ounce grew by 39.4% from $1,947 to $2,715 exceeding the growth rates of the US S&P index, with the author referring to that correlation as unusual.

"Ask why this is happening and you will normally get an answer that mentions a general loss in confidence in America’s management of the global order and two specific developments. You will hear about America’s weaponization of trade tariffs and investment sanctions, together with its reduced interest in the rule-based, co-operative multilateral system that it played a pivotal role in designing 80 years ago," the expert wrote.