Blue sweep of Congress will add pressure to weak dollar, analysts say

Financial Times/Eva Szalay and Colby Smith/1-7-2021

“Victory for the Democratic party in this week’s Senate run-offs will add to the long-term pressure on the US dollar, which was already expected to continue its slide this year, analysts say.”

USAGOLD note:  Gold’s selloff last week was driven by a flight from safe havens – that departure, principally from the bond market, added high octane to the speculative stock market frenzy.  A number of analysts, though, believe that the most dangerous outcome will be a sharp decline in the dollar.  Over the past twelve months, the U.S. Dollar Index is down 12%.

U.S. Dollar Index
(one year)

line chart showing the U.S. Dollar Index over past 12 months

Courtesy of • • • Click to enlarge

Repost from 1-11-2021

This entry was posted in Today's top gold news and opinion. Bookmark the permalink.