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By Kenan MachadoSept. 8, 2017 4:32 a.m. ETThe dollar was hit by fresh selling in Asian trading Friday, a day after notching a 2½-year low, as reasons for caution on the currency continued to mount.The Wall Street Journal Dollar Index was off 0.4% in Asia to 84.38, putting it down 9.2% for the year.Thursday’s 0.7% drop was part of a broader move by investors into haven assets such as gold and government debt—a dollar “capitulation trade,” said Rob Rennie, currency-strategy chief at Australian bank Westpac . It was fueled in part by the European Central Bank, which raised growth forecasts and thus spurred the euro.The action highlighted how market sentiment has shifted as 2017 has progressed. The year began with high investor hopes that the Trump administration’s program of infrastructure spending, tax overhaul and regulatory cutbacks would cause long-muted U.S. growth to accelerate.But the enthusiasm has waned as months pass without legislation, despite Republican control of not just the White House but Congress......“The dollar can’t find any loving at the moment,” said Rodrigo Catril, a foreign-exchange strategist at National Australia Bank in Sydney. Given the unresolved fiscal issues in the U.S.—debt-ceiling measures “kicked down the road again”—and political wrangling between President Trump and his own party, he adds, it isn’t hard to understand why.Write to Kenan Machado at kenan.machado@wsj.com
But the enthusiasm has waned as months pass without legislation, despite Republican control of not just the White House but Congress.
China is expected shortly to launch a crude oil futures contract priced in yuan and convertible into gold in what analysts say could be a game-changer for the industry.The contract could become the most important Asia-based crude oil benchmark, given that China is the world's biggest oil importer. Crude oil is usually priced in relation to Brent or West Texas Intermediate futures, both denominated in U.S. dollars.
The move against the dollar as the reserve currency has begun: https://asia.nikkei.com/Markets/Commodities/China-sees-new-world-order-with-oil-benchmark-backed-by-goldChina sees new world order with oil benchmark backed by gold (more at the link)
I believe you are correct. It has been coming for some time.
1. United StatesTonnes: 8,133.5Percent of foreign reserves: 74.9 percentWith the largest holding in the world, the U.S. lays claim to nearly as much gold as the next three countries combined. It also has one of the highest gold allocations as a percentage of its foreign reserves, second only to Tajikistan, where the metal accounts for more than 88 percent. Donald Trump made headlines recently, claiming “we do not have the gold,” but from what we know, the majority of U.S. gold is held at Fort Knox in Kentucky, with the remainder held at the Philadelphia Mint, Denver Mint, San Francisco Assay Office and West Point Bullion Depository.The US holds most of its gold at the US Bullion Reservatory at Fort Knox
From Smokin Joe's source:
