Weak Dollar Propels Gold's Status

Source:

“As we get to the other side of this bailout plan, the dollar will get crushed,” John Taylor, chairman of New York-based International Foreign Exchange Concepts, the world’s biggest currency hedge-fund firm, told Australia’s The Age newspaper.

The U.S. government’s proposed $700 billion bailout plan would boost the nation’s debt ceiling by 6.6% to $11.315 trillion and is putting pressure on the greenback as a result.

“As we get to the other side of this, the dollar will get crushed,” John Taylor, chairman of New York-based International Foreign Exchange Concepts, the world’s biggest currency hedge-fund firm, told Australia’s The Age newspaper.

Recent weakness in the U.S. dollar and turbulence in the financial markets are also helping gold regain its status as a universally recognized monetary anchor.

Alan Ruskin, head of international currency strategy for North America at RBS Greenwich Capital Markets told Bloomberg: The massive increase in the deficit is starting to make people rethink the shape of all sorts of things, including the dollar.

Related Articles

Get Our Streetwise Reports Newsletter Free

A valid email address is required to subscribe