Goldman Sachs Issues US Dollar Warning As Gold Shatters New Record High
Gold simply shattered a brand new document excessive because the US greenback drops under a degree of assist that’s held for over 14 years.
The dear metallic touched $5,279 on Tuesday, with the US Greenback Index (DXY) buying and selling at 4 12 months lows, dipping below a degree of assist that’s held since 2011.
The greenback drop is in keeping with a brand new warning from Goldman Sachs.
In its 2026 International FX Outlook report, the banking large forecasts additional greenback depreciation this 12 months.
The financial institution sees the greenback as 15% overvalued, naming the rise of AI as a possible productiveness wild card.
Though Goldman believes the greenback will proceed to depreciate, the financial institution doesn’t imagine its standing because the world’s reserve forex is in danger.
“Whereas we see plenty of acquainted draw back dangers to the greenback, we predict it’s nonetheless essential to differentiate between greenback depreciation and greenback dominance. Our forecast for additional, modest greenback depreciation is in line with extra balanced international development and an overvalued, overperforming, safe-haven forex.
Now we have seen solely restricted proof of de-dollarization or displacement of the greenback’s dominant worldwide position lately and don’t count on this to contribute to the greenback’s efficiency on a day-to-day, and even year-to-year, foundation.”
As for the rising value of gold, Goldman’s head of Delta One, Wealthy Privorotsky, says elementary flows are backing the historic rally.
“There may be clearly sizzling cash concerned, however at the start gold is a central financial institution commerce… a gradual erosion of the greenback’s exorbitant privilege slightly than a sudden lack of confidence.”
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