Is gold REPLACING the dollar?!

Much of the recent price increase is driven by central banks and institutional investors, but industry observers say gold is also drawing fresh attention from retail investors, who are more likely to turn to the precious metal in times of uncertainty.

On Friday, the U.S. dollar fell for a fifth straight day. Consumer sentiment worsened for the fourth-consecutive month, according to a closely watched University of Michigan survey. The yield on 10-year U.S. Treasury bonds — typically seen as a safe haven — briefly climbed above 4.5 percent, raising fresh questions about where people turn in times of economic volatility.

“The references you’re hearing now are things you haven’t heard since the 1930s” when the protectionist Smoot-Hawley Tariff Act took effect, said David Greely, chief economist at Abaxx Technologies, which is majority owner of a commodities futures exchange in Singapore. “… It makes people look and say, ‘Okay, are the assets that I thought were safe, safe?’

reporting by Shannon Najmabadi

Видео Is gold REPLACING the dollar?! канала Washington Post Universe