Loading ...[a 3-4 week correction and will soon go to new highs. as the seasonally strongest period of the year for gold is. here]
Gold’s Strength Will Outlast The Dollar’s
Gold and the dollar are at a crossroads in terms of relative performance.
U.S. intervention to weaken the dollar is a possibility in coming months.
Regardless, global tensions virtually assure continued strength for gold.
There’s also a definite political incentivefor the Trump administration to collaborate with the U.S. Treasury Department and the Fed at some point to weaken the dollar before the global economy becomes truly unhinged. A U.S. currency intervention would, of course, pave the way for China to accuse the U.S. of being a currency manipulator. But anything that weakens the dollar would also give additional support for the gold price due to its currency component. Between continued global market volatility and the possibility for a weaker dollar, gold stands to benefit in either case.