The US dollar (USD) is partially losing its value reserve function, a macro theme that has already happened many times throughout history. Gold is capturing a portion of that value reserve function, says Daniel Ghald, senior strategist of TDS Commodities.
The expansion of the SGE in gold suggests a bigger game in the chess of currencies
“The dynamic of overcompared but sub -veined of gold, the appetite of the central banks for gold and the apparent disconnection of gold with traditional indicators such as USD, US rates and appetite for risk are a symptom of this.”
The expansion of the SGE towards Hong Kong seeks to capitalize on this megatemos promoting the trade called in Yuanes in the largest gold market, which seeks to make incursions into a different but related topic: the reserve currency status of the USD. The reserve currency status is not lost overnight, but in the context of the Magaxit, this only represents a movement on the large chess board. “
“At the moment, the distension in commerce has relieved the impulse to buy gold, but the feeling is poor, and with the participation as low as it is today, it is difficult for us to see sustainably lower gold prices. On the other hand, we see several catalysts in the horizon for the next impulse of purchase.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
