JPMorgan on what will follow
The combination of massive fiscal and monetary stimulus will lead to currency worsening and the winner will be the price of gold, according to a JPMorgan report.
Gold is down from $ 27 to $ 1,720 today after hitting an 8-year high earlier this week. The weakness comes today after it was revealed that the Russian central bank had bought no gold in April.
“Those who see in the main currencies different shades of the same
long-term liabilities should simply remain a world heritage for a long time
reserve currency – gold, “they wrote, warning that debasement is a” high probability “.
On the FX side, they warn that growth will remain weak and that inflation and currency depreciation will be a protracted process. They say the Swiss franc and the yen should outperform.