- Jeff Curie recently highlighted his motive behind his confidence in gold-based crypto tokens.
- The economist believes that Gold has developed an immunity against the virus.
- This achieved regardless of today’s uncertain environment due to the COVID-19 pandemic.
Jeff Curie, Goldman Sachs GIR Head, in a recent interview with Bloomberg highlighted his motive behind his confidence in gold-based crypto tokens.
The economist believes that Gold has developed an immunity against the virus. This achieved regardless of today’s uncertain environment due to the COVID-19 pandemic. Moreover, Gold has performed well in the economic crisis faced internationally. Better than any other safe-haven assets.
The interview took place on Tuesday, 12th of May, with Alix Steel. The anchor on Bloomberg’s show “Bloomberg Daybreak: Americas”. On this specific date, gold was being traded at $1,700 level. In the very beginning of the interview, Jeff Curie was asked what was his favorite commodity to trade. He quickly responded that at this point they really liked Gold
While evaluating the gold price hikes at Bloomberg’s Headquarters, Goldman Sachs GIR Head, asserted that the virus supports gold prices. Furthermore, he predicted them to reach 1800$.
In fact, in a report by MarketWatch released on March 24th where Curies corresponded with investment banks. He argued that gold has long been seen as the currency of last resort. It has acted as protection in case of currency debasement when policymakers respond to withstand shocks and disturbances. This also includes the ones they are enduring now.
It’s not just Goldman Sachs who Prefer Gold
Furthermore, Goldman Sachs is not the only investment bank that has shown assertiveness to gold this year. Bank of America reportedly increased its 18-month target for gold from $2000 to $3000 per ounce. This came out in Bloomberg’s report on April 24th titled “The Fed can’t print gold.”
Bank and financial service provider TD Securities has also shown quite some interest in gold, setting its latest trading call at $ 1900 per ounce.
Governments have started using monetary and fiscal tools to curb the financial losses they face due to the COVID-19 pandemic. As this happens fiscal outlays will rise and central bank balance sheets will double, bringing pressure on fiat currencies. In such a situation investors will start aiming for gold.
The founder of precious metals custodians Goldmoney Roy Sebag conversed with CoinDesk proclaiming the Feds have changed the rules completely and interest rates have varied which is why we have observed immediate investment in gold.
Hence, it is not surprising that as of late March, Coindesk acknowledged that gold–backed crypto tokens such as PAX Gold (PAXG) and Tether Gold (XAUT) continue to rise as solid gold becomes difficult to attain due to regulation following COVID-19. The two assets Bitcoin and Gold have displayed a strong correlation since the beginning of the month.
By the data released at TradingView, at present (around 15:27 UTC on May 18) gold is trading at $1729.41, down $14.53 (i.e. -0.83%). Gold is up 13.82% against USD in the year-to-date (YTD) period.
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