The relentless rise in the price of gold will call into question the viability of the U.S. dollar and its ability to continue to as the world's reserve currency. Given the lack of yield, if the dollar keeps losing value relative to gold, it will lose its reserve status to gold.
May 20, 2020
Does Powell Watch The Price Of Gold?
Someone should also ask Powell if he watches the price of gold, and if there is a price that would be high enough to concern him that Fed monetary policy is too loose, and that a dollar crisis might result from a failure to raise rates sharply and sell down the balance sheet?
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