Gold to rise above $2’000 on re-alignment of USD with EUR and £
The above chart shows the price of gold in US dollars (blue), GBP (green), and EUR (red).
As you can see, the price of gold has appreciated considerably more since 2007 in Sterling and Euros than it has in US dollars. Put this another way, it means that the British pound and the European Euro have been relatively weak currencies compared to the US dollar.
Given all the talk about currency manipulation and gaining trading advantages by devaluing currencies, it seems that the US would need to work on devaluing its currency to bring it back in line with the two major European currencies.
If this were to happen, the upside for gold is quite substantial. Broadly speaking that would mean around 40% increase from here, taking the gold price up by around USD 560 to a level well above the previous all-time high of USD1920, and above the $2000 level.
As you can see, the price of gold has appreciated considerably more since 2007 in Sterling and Euros than it has in US dollars. Put this another way, it means that the British pound and the European Euro have been relatively weak currencies compared to the US dollar.
Given all the talk about currency manipulation and gaining trading advantages by devaluing currencies, it seems that the US would need to work on devaluing its currency to bring it back in line with the two major European currencies.
If this were to happen, the upside for gold is quite substantial. Broadly speaking that would mean around 40% increase from here, taking the gold price up by around USD 560 to a level well above the previous all-time high of USD1920, and above the $2000 level.