Gold Wins In a Currency War – Deutsche Bank
Neils Christensen
Wednesday July 17, 2019 15:16
(Kitco News) - The gold market continues to benefit from ongoing trade tensions and could shine even brighter as the threat of a currency war grows, according to one bank.
Trade tensions ratcheted higher after U.S. President Donald Trump threatened Tuesday that his government could still impose tariffs on another $325 billion of imported Chinese goods. Although risks of a global currency war are low, some market analysts do see it as a growing threat
Alan Ruskin, global head of G10 FX strategy at Deutsche Bank, said that gold could be the clear winner in a global currency war.
“With a currency war most likely to be fought on USD/CNY and EUR/USD terrain, one approach would be to steer clear of the direct conflict,” Ruskin said in the report. “By far the most direct and simple way to trade the complexities of a currency war is by going long gold.”
Since June the gold market has benefited from a weaker U.S. dollar as markets anticipate aggressively loose monetary policy from the Federal Reserve. Currently markets expect the U.S. central bank to cut rates by at least 25 basis-points by the end of the month.
August gold futures last traded at $1,423.30 an ounce, up 0.88% on the day.
Source: Kitco News
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Copyright © 2019 Dinar Chronicles
Neils Christensen
Wednesday July 17, 2019 15:16
(Kitco News) - The gold market continues to benefit from ongoing trade tensions and could shine even brighter as the threat of a currency war grows, according to one bank.
Trade tensions ratcheted higher after U.S. President Donald Trump threatened Tuesday that his government could still impose tariffs on another $325 billion of imported Chinese goods. Although risks of a global currency war are low, some market analysts do see it as a growing threat
Alan Ruskin, global head of G10 FX strategy at Deutsche Bank, said that gold could be the clear winner in a global currency war.
“With a currency war most likely to be fought on USD/CNY and EUR/USD terrain, one approach would be to steer clear of the direct conflict,” Ruskin said in the report. “By far the most direct and simple way to trade the complexities of a currency war is by going long gold.”
The threat of a currency war has picked up since the start of the month after Trump accused China and Europe of manipulating their currencies in a twitter post.China and Europe playing big currency manipulation game and pumping money into their system in order to compete with USA. We should MATCH, or continue being the dummies who sit back and politely watch as other countries continue to play their games - as they have for many years!— Donald J. Trump (@realDonaldTrump) July 3, 2019
Since June the gold market has benefited from a weaker U.S. dollar as markets anticipate aggressively loose monetary policy from the Federal Reserve. Currently markets expect the U.S. central bank to cut rates by at least 25 basis-points by the end of the month.
August gold futures last traded at $1,423.30 an ounce, up 0.88% on the day.
Source: Kitco News
______________________________________________________
If you wish to contact the author of any reader submitted guest post, you can give us an email at UniversalOm432Hz@gmail.com and we'll forward your request to the author.
______________________________________________________
All articles, videos, and images posted on Dinar Chronicles were submitted by readers and/or handpicked by the site itself for informational and/or entertainment purposes.
Dinar Chronicles is not a registered investment adviser, broker dealer, banker or currency dealer and as such, no information on the website should be construed as investment advice. We do not support, represent or guarantee the completeness, truthfulness, accuracy, or reliability of any content or communications posted on this site. Information posted on this site may or may not be fictitious. We do not intend to and are not providing financial, legal, tax, political or any other advice to readers of this website.
Copyright © 2019 Dinar Chronicles
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