28 Jul US dollar breaking down, gold and the $A breaking up – what does it mean for investors?
Key Points:
- The US dollar looks to have peaked in part reflecting reduced safe haven demand with more downside likely.
- The gold price has broken out to a record high reflecting a declining US dollar, investors demand for an inflation hedge and a fall in the opportunity cost of holding gold. More upside is likely.
- The Australian dollar has broken higher reflecting the declining US dollar, along with higher commodity prices and its likely the trend will remain up.
