Goldman Sachs has warned that the US dollar’s reign as the world’s reserve currency is coming under threat, as evidenced by the recent surge in gold’s rally. Indeed, the greenback faces several risks in the form of twin deficits, Federal Reserve’s aggressive money printing, increased political uncertainty, and growing concerns of another coronavirus infection spike. “Real concerns around the longevity of the U.S. dollar as a reserve currency have started to emerge. Gold is the currency of last resort, particularly in an environment like the current one where governments are debasing their fiat currencies and pushing real interest rates to all-time lows,” analysts at Goldman Sachs noted on Tuesday, according to Bloomberg. Gold jumped to a fresh lifetime high of $1,981 on Tuesday, surpassing the previous high of $1,921 reached in September 2011. The yellow metal has gained 29% this year and 10% this month alone. Meanwhile, the dollar index, which tracks the value of the greenback, fell to two-year lows below 93.50 earlier this week. FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next Ethereum Price Prediction: ETH/USD readies for the ultimate lift-off to $340 – Confluence Detector FX Street 3 years Goldman Sachs has warned that the US dollar's reign as the world's reserve currency is coming under threat, as evidenced by the recent surge in gold's rally. Indeed, the greenback faces several risks in the form of twin deficits, Federal Reserve's aggressive money printing, increased political uncertainty, and growing concerns of another coronavirus infection spike. "Real concerns around the longevity of the U.S. dollar as a reserve currency have started to emerge. Gold is the currency of last resort, particularly in an environment like the current one where governments are debasing their fiat currencies and pushing real interest rates to… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
