Many experts believe that in the near future, gold will become a leading asset or currency in the market, displacing the dollar. The prospects are not even diminished by the intense fluctuation of its quotes.
Last Friday, May 22, market analysts recorded a rise in gold quotes by 0.4%, amounting to $ 1,734 per 1 troy ounce. The increase was due to the escalating geopolitical tensions in the US and China, caused by the issues surrounding Hong Kong. Investors were prompted to buy the yellow metal, so gold futures for June delivery increased by 0.79%, and won to $ 1,735.5 per ounce.
Afterwards, gold quotes slipped 0.6%. The fluctuation undermine its position, but it does not deprive the asset its attractiveness in the long run. A plus for the yellow metal was the active price increase since the beginning of 2020, which was not affected even by the coronavirus pandemic. On the contrary, the outbreak became a catalyst for growth, since the demand for the asset increased, as traders considered it as a safe currency. On Monday, May 25, gold dipped slightly, trading near $ 1,728 for 1 ounce.
According to economist Peter Schiff, the US dollar will soon weaken, while gold will take over and increase against all other currencies. Schiff is confident that in the near future, gold will displace the dollar and become the new main global currency, due to its numerous advantages such as reliability and relevance regardless of political and economic situations in the world.
According to Schiff, changes are awaiting the global economy after the pandemic. One of them will be a reversal in relation to precious metals, with gold becoming a reserve currency and used in international settlements more often than others.
