Gold, monetary policy and the US dollar
After briefly exceeding USD2,000 per ounce in August, the price of gold has retreated more recently, prompting some commentators to wonder whether the rally that started in 2018 has come to an end. In this Macro Flash Note, GianLuigi Mandruzzato looks at the drivers of the price of gold and concludes that it will be supported by extremely accommodative economic policies and expectations of a weak dollar in the coming years. Historically, the price of gold has risen to compensate for the loss of value of the US dollar.
GianLuigi Mandruzzato
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