Governments may ban private gold ownership
A Bloomberg report quotes hedge fund tycoon Crispin Odey as saying that governments may ban private ownership of gold if they lose control of inflation.
Governments and central banks across the globe have launched unprecedented fiscal and monetary lifelines to help their respective economies contain the fallout from the coronavirus outbreak. Many economists are of the opinion that the trillions of dollars of liquidity that is being injected into the global economy would lead to a sharp rise in inflation.
Gold, a classic hedge against inflation, recently rose to 7.5-year highs near $1,765 and has already rallied by over 10% this year.
Gold snaps two-day winning streak to slip below $1,750
Despite bouncing off intraday low of $1,742.80, Gold prints 0.20% loss while taking rounds to $1,745 amid the initial trading session on Thursday. In doing so, the bullion snaps the previous two-day winning streak as the US dollar bounces back from multi-day low amid risk reset.
In addition to the initial Washington Post news suggesting further US-China drama, US President Donald Trump’s latest tweets also indicate a wider difference between the world’s top two economies.
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