Well it certainly makes it more attractive, however CBs aren't particularly opportunistic. There has been some considerable diversification into the Euro in the last 10 years, however at this point there are few other options that offer the required liquidity. Eventually China will issue bonds, but it will be some time before they are a major component of the bond market.
I wouldn't be surprised to see the BRICS bank issue bonds before too long & although again the issuance is likely to be smallish, but I think they would be in quite good demand.
Gold will continue to benefit but CBs are aware its a small market so won't want to push the price too hard & at this point seem quite happy to absorb production & Western selling. We have to remember India the biggest consumer of until last year has had 10% import duties applied. Its a major impediment for gold demand & yet it seems to be holding up. A stronger dollar also means that there is no weakness in price in currency terms so that is not assisting demand either.
In summary the USD's dominance IMO will be eroded over time. Any sharp change in appetite from a major holder like China would be catastrophic to markets & the global economy & for that reason I doubt it will happen as everyone involved gets hurt.
