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Battered U.S. dollar ‘hanging by a thread’ as coronavirus cases grow

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Reuters/Gertrude Chavez-Dreyfuss/7-22-2020

“A steady decline in the dollar has accelerated in recent weeks, as a resurgent coronavirus outbreak in the United States and improving economic prospects abroad sour investors on the currency.”

USAGOLD note:   Gold and the dollar tracked higher together during 2019 the beneficiaries of safe haven asset demand. Now they’ve separated as inflation concerns grow and aggressive Federal Reserve stimulus policies take effect.

overlay line chart showing gold versus the US dollar 2019 to presentSources:  ICE Benchmark Administration (IBA), Federal Reserve Board of Governors, St. Louis Federal Reserve [FRED]