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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.