New Delhi, June 7 -- Two different eras, two similar occurrences.

Fifty-five years ago, increasingly restive global central banks wanted to dump U.S. dollars for gold in a vote of no confidence in America's policies. Their concerns proved right after President Richard Nixon ended the dollar's convertibility into gold at the fixed price of $35 an ounce on Aug. 15.

Fast-forward to 2025. Global central banks sharply increased their holdings of gold amid increasing wariness about U.S. policies. By the end of last year, their bullion stakes exceeded their portfolios of U.S. Treasury securities, according to a report released this past week by the European Central Bank.

In both instances, decisions emanating from Washington that affected the...