A commodity analyst from Heritage West Futures claimed today (February 27th) that gold is currently competing with the dollar as a safe-haven asset, the Telegraph reports.
Gold Prices generally tend to move in the opposite direction to the greenback, but both have strengthened notably in recent months as people look for alternative investments.
Now Ralph Preston from the San Diego-based firm has explained that the relationship appears to have broken down, albeit for now, as investors see considerable value in both.
He told the newspaper: "My clients are looking to gold as a safe haven. Gold is turning into a currency and competing with the dollar. It's the battle of the safe havens."
Natalie Dempster, head of investment at the World Gold Council, has added weight to that theory by suggesting that investors are Buying Gold as they cannot see a viable alternative.
"There's been a realisation that things are not getting better in the corporate world, and therefore investors are going into gold partly because they don't know where else to go," she told Citywire.
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