As the US dollar weakens, all that glitters is gold

Amidst global uncertainties like the US intervention in Venezuela and the investigation of US Federal Reserve Chairman Jerome Powell, gold has become an attractive store of value, yielding high returns compared to bonds. The Trump administration's fiscal policies, including increased defense spending and tax cuts, have raised concerns about rising federal debt and a depreciating dollar. This has led major investors to reduce their dollar weighting, suggesting a shift towards gold as a more reliable asset in an unstable economic climate. Central banks' gold holdings now represent a significant portion of total reserves.

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