The dollar may slide further, but analysts say its demise is ‘greatly exaggerated’
“The greenback had benefited as investors flew to safety amid the pandemic, which drove it to a three-and-a-half year high in March. But now strategists say the country’s economic recovery is in question, given its weak coronavirus response. The dollar had also reacted to the country’s surging deficit and the prospect of U.S. interest rates remaining lower for longer.”
USAGOLD note: The more important trends among currencies as far as gold is concerned is their depreciation against goods and services and the drift to ever lower real rates of return. As long as those trends are in motion demand for gold as a fall-back portfolio position will remain intact. At this juncture, whether or not the dollar remains the primary reserve currency is a secondary issue. In reality, as this article points out, there is really nothing to replace it.
Repost from 8-25-2020