Standard Chartered sees dollar as vulnerable to ‘significant depreciation’
“The [Standard Chartered] analyst said a victory for former Vice President Joe Biden would mean any dollar depreciation is set to be ‘very clear and very pronounced.’ If President Donald Trump is reelected, Robertsen said it will be ‘a little bit more messy in the short term.'”
USAGOLD note: Standard Chartered is not alone when it registers concern about the dollar. This article ends with a reminder that Stephen Roach, the highly respected Yale economist, forecasts a 35% decline for the dollar in 2021. If so, gold is likely to experience heavy demand. As the chart below shows, gold and the dollar index rose together in the first stages of the pandemic when both were seen as safe havens within the investment community. Beginning in June, they parted company (gold higher, the dollar lower) as worries about the dollar began to surface at the launch of the Fed’s stimulus program.
Repost from 10-22-2020