Forbes: Gold Has Held Up Nicely Against a Strong Dollar and Surging Bond Yields

Article by Frank Holmes in Forbes

We’re almost halfway through 2022 and so far gold has been the big winner after oil, coal and other commodities.

The yellow metal has managed to stay positive since the start of the year, skirting pressure from surging yields and a strong U.S. dollar.

Meanwhile, every other asset class—from large-cap and small-cap equities to bonds, from real estate investment trusts (REITs) to cryptocurrencies—has fallen into either correction or bear market territory.

I believe this shows that gold has retained its perceived role as a store of value during times of decades-high inflation and economic and geopolitical uncertainty.

As I often say, investing in gold won’t make you a billionaire, but it could help stabilize your portfolio when everything else is crashing.

Dollar At 20-Year Highs

I’m most impressed that gold has stayed afloat, even as the U.S. dollar has strengthened to 20-year highs against a basket of other major currencies.

Since gold is priced in dollars, the two assets have historically shared an inverse relationship, with one falling when the other rises, and vice versa. The value of the dollar is now highly elevated on the back of interest rate hikes, and yet the yellow metal has continued to trade above $1,800 an ounce.

It’s for this reason, among others, that I agree with .......

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