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Spot Gold Soars To Record High As Dollar Freefall Accelerates Tyler Durden Sun, 07/26/2020 - 23:04

Spot Gold is surging in Asian trading as the dollar is dumped.

Source: Bloomberg

Spot Gold traded above $1930, taking out the $1921 highs from 2011...

Source: Bloomberg

The dollar has crashed to 19 month lows...

Source: Bloomberg

Gold appears to be more and more in favor as an alternative place to allocate wealth amid the growing pile of negative-yielding debt (and note that cryptos are starting to get a bid for the same reason)...

Source: Bloomberg

As Jim Grant recently explained:

The Fed wants us to believe that we should believe that there will be no inflation out of all this and to me that is a vast unknown. We have America’s fasted peacetime money-growth coexisting with the all-time 4,000-year record lows in interest rates. It’s a most curious and troubling juxtaposition there.”

Grant said aggressive moves by governments and central banks are unwise.

I think what we have is a monetary moment that is unprecedented and therefore calls for extreme caution and great humility on the parts of all of us.”

So is the "monetary moment" sparking a loss of faith in fiat?

 


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