Global investors are revising their portfolios. Lately, the US dollar has been losing the status of a safe-haven asset. Moreover, it could be assigned to the category of risky assets if the scenario of the second pandemic wave comes true, experts at Deutsche Bank has reached an unexpected conclusion.
As an alternative to the US dollar, market participants are poised to invest their cash holdings in gold for long-term protection as gold is the time-proven leader among shelter assets. The second coronavirus outbreak will reignite turmoil in global financial markets that is sure to boost demand for the precious metal. Amid the virus concerns, its price surged to $1,788 per troy ounce, the highest level since mid-April with prospects for a further rally. Meanwhile, the US dollar is extending its weakness across the board. Interestingly, even the Chinese yuan, whose forex rate in being moderated by China’s monetary authorities, looks more promising than the greenback. Reckoning the prospects of the renminbi, analysts at Deutsche Bank foresee its lucrative investment opportunities.
Investors stoked fears following reports of a spike in coronavirus cases primarily in the US and also in other countries in late June. As a result, markets are flooded by “multiple cross-currents for currencies” amid the worries about the resurgence of COVID-19 across the world, Deutsche Bank says.
