Goldman Sachs has warned of “real concerns” about the dollar’s status as the world’s reserve currency as America grapples with soaring debt and rising political and social uncertainty.
The Wall Street investment bank said that investor fears about the dollar’s long-term status were evident in the gold price, which has soared to new highs and is expected to continue rising. Gold is considered the ultimate safe haven as its limited supply provides inflation protection.
America’s central bank will reveal its latest rate decision today and, although policy is expected to be unchanged, fears are growing that the Federal Reserve will tolerate high inflation and will keep interest rates low to reduce post-pandemic debt.
“Real concerns around the longevity of the US dollar as a reserve