Bloomberg/John Authers/12-7-2022
“At present, investors seem confident that the sum-total of all they need to fear is declining. They might well be wrong, and there are many ways that perceived risk could start to rise again. But while investors continue to exhale with relief, we can expect the dollar to keep falling.”
USAGOLD note: Gold’s fate over the past few years has been inversely tied to that of the dollar, so when Bloomberg’s John Auther’s suggested the dollar might be topping in his column Friday morning, it caught our attention. The dollar’s run to record prices, says Authers, was tied to China’s strict covid policies, Europe’s energy problem, and the Fed’s tightening regime. Those three risks have now peaked, according to Deutsche Bank’s George Saravelos, and Wall Street is beginning to factor in a declining dollar as we move into the new year.
