These risks explain why the U.S. dollar index has plunged, moving from the year-to-date high of $110 in January to $97.73 today.
At the same time, the gold price has recently surged to a record high as ETFs have added substantial inflows in the past few months. China’s central bank has bought gold in the last eleven consecutive months, bringing its holdings to $74 million troy ounces. Goldman Sachs analysts see the gold price hitting $5,000.
The Swiss franc has also become a safe haven as it surged by 13% against the U.S. dollar. Investors love the low-yielding franc because of Switzerland’s stability, neutrality, and low public debt.
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