"Gold is outperforming as a safe-haven for investors who are bailing out of assets being dragged down by the falling U.S. dollar. The dollar fell 1.3% yesterday against a standard index of foreign currencies. It's down over 2% year to date. One euro now buys $1.20. The British pound is worth $1.38. The dollar hasn't been this weak for years."
""The dollar is not likely to lose reserve status overnight," UBS's Paul Donovan said earlier this week. "However, the decline of the U.S. internationally and international investors' questions over key issues like rule of law mean it is losing market share. Moreover, as trade stagnates (and may retreat), reserve status becomes less important. International investors are not likely to flounce out of dollar assets in a dramatic exit, but may be less interested in accumulating additional dollar holdings.""
Gold climbed past $5,300 and rose about 3% in a session, bringing year-to-date gains to 22.31% as investors fled to safe havens. The U.S. dollar fell sharply—1.3% in a day and more than 2% year-to-date—putting the euro at $1.20 and the pound at $1.38. President Trump welcomed the weaker dollar for boosting exports. A sustained dollar decline risks eroding confidence in its reserve-currency role. UBS noted that relative U.S. decline and rule-of-law concerns are reducing dollar market share, making bonds particularly vulnerable and discouraging further accumulation of dollar assets.
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