Gold is expensive, but Deutsche Bank expects the failure of investors from the dollar

Investors will refrain from investing in the US dollar as a “safe haven” in the event of arrival of the second wave of the pandemic COVID-19, said in an interview with CNBC Deutsche Bank strategist Samir Goel. Meanwhile, gold rose to high of mid-April because of fears of a second wave of the pandemic.

the US Dollar may depreciate against most currencies in developed markets and even the Chinese yuan. Answering the question about prospects of the Chinese yuan, Goel said that the prospects of the Chinese currency “very much improved”. Currency markets are now filled with “multiple counter threads” for fear of a possible second wave of cases of coronavirus in the world, said Goal from Deutsche Bank.

the U.S. Dollar often used as a protective asset in case of economic crises. Investors usually buy US dollars in times of uncertainty as the world’s reserve currency.

“it Seems that the extra demand for dollars decreases,” — said strategist at Deutsche Bank. In his opinion, the prospects of US withdrawal from pandemic look worse than the rest of the world. The lifting of the restrictions and the resumption of economic activity occurs faster in other countries. “Our tracker mobility suggests that a large part of Europe, for example, offers a faster,” — said Goal.

Meanwhile, another expensive defensive asset — gold. Gold price on Monday rose to the highest since April 13, to $1788,35 per Troy ounce. The Russian banks reduce the gold reserves of the 6th month in a row.

Comments Goal sounded after the US reported a sharp increase in the number of cases at weekends. According to data collected by Johns Hopkins University on Friday and Saturday there were more than 30 000 new cases. This is the highest daily count in the United States from 1 may. According to the results of June 21, Sunday, the world health organization (who) reported an increase in cases of coronavirus in the world for a day for the first time more than 180 thousand cases.