King Dollar and Queen Gold are here to stay

Growing geopolitical uncertainty is a common factor that is making the US dollar and gold hard to ignore for investors. For the dollar, its lion’s share in central bank reserves and all cross-border deals ensures its supremacy

Ajay Bagga
May 10, 2023 / 09:06 AM IST
King Dollar and Queen Gold are here to stay

Gold has been playing a part in the de-dollarisation moves of central banks and governments. (File photo/iStock)

Highlights:  Gold is a top-performing asset since collapse of Silicon Valley Bank, rising 9 percent  HSBC poll of 83 central banks found more than two-thirds expect increase in gold holdings  Depth of US economy, military might, share in cross border transactions all ensure the dollar’s supremacy   US debt ceiling posturing, huge treasury debt have irked dollar investors  Changing geopolitics, digitisation, polarised US politics could chip away at the dollar’s strength    Don’t believe the stories of the falling relevance of the US dollar or of...