When the gold price drops, so does the value of the dollar.
Gold futures contracts in the U.S. are now trading at about 70 cents per ounce.
But for gold, there’s a bigger threat: The dollar is trading near an all-time low.
Gold futures contracts for the U.
“The price of gold, which was about $1,600 an ounce in the early days of the Great Recession, has since fallen to about $9,000 an ounce.
That is a drop of more than 90% over the past year, and the lowest since the early 1990s.
If the gold-dollar gap continues to widen, investors could be paying a steep price for buying gold, says Michael Hiltzik, head of fixed income at Morgan Stanley.
Gold is the best-performing asset class in the world and the biggest reason the dollar is still trading near the record lows it hit during the global financial crisis.
While the dollar may not be going down, it’s a long way from falling to its pre-crisis levels.
The U.K. is the only major country with a gold price index above 1,000 and it has been trading above $1.60 an ounce for some time.
The euro has been sliding, while the Chinese yuan is trading at a record low.
Gold has been priced at record lows as the U, U.N. and other international sanctions against Iran and North Korea have increased pressure on the country’s economy.
Gold futures trading is likely to remain below the $1 million mark as the Fed begins to ease its grip on the dollar market.
That could lead to a sharp correction in the price of the metal as investors are likely to continue to sell their gold.
The gold price is likely still above $8,000 a troy ounce, but that’s a big jump for a commodity that’s only been trading at $1 an ounce since last year.
Gold prices have been on a tear for a couple of years, with the metal rising to its highest level since 2010, according to the U: In the year to March 1, gold prices rose by almost 5 percent, compared with a year earlier.
That’s not the biggest leap of any asset class, but the market is likely heading for a major rally.
Some investors may be buying gold to hedge against the prospect of the Fed easing monetary policy.
The Fed’s latest moves, though, have created the potential for a massive drop in the dollar, says Brian Johnson, chief investment officer at TD Ameritrade.
“It’s a riskier bet.””
It’s really more a question of, is the dollar still a good place to be,” he says.
“It’s a riskier bet.”
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