The US dollar suffered a crippling loss yesterday amid new lockdown restrictions and soaring case numbers, sending gold soaring to a nine-year high. The dollar index tumbled by -0.65, sending it to a low not seen since the onset of the pandemic in March. Overall, the dollar has lost 2.3% in the month to date and 5.1% in the last quarter. MarketWatch described the loss as “a punch in the face”.
BK Asset Management’s managing director of G-10 currency strategy, Boris Schlossberg told the publication, “The dollar is very vulnerable now… massive spending and the general lack of allure of the U.S. dollar could be…more of a threat to the dollar than people appreciate.”
The losses for the dollar came as President Trump finally admitted that COVID-19 could get worse before it gets better and signalled that it was “patriotic” to wear a mask. Both of these are great news for gold; a weaker dollar always plays to the precious metal’s strength by reinforcing safe haven demand
With stock markets also falling on Trump’s remarks, gold got a double boost in momentum. The combined jolt has seen gold reach a historical all time high £1,466 ($1865) this morning (Wednesday). That’s over 20% up on the start of the pandemic and a record high not seen in the history of the precious metal.
Why buy now? It’s now widely accepted that we’ll soon see £1,659.38 ($2,100) in the near future. Get ready – invest now.