- Gold prices continue to cling to support around $1,950 an ounce as it struggles to attract bullish investor attention; however, one market strategist said that the precious metal remains well positioned to take advantage of the U.S. dollar's waning reserve currency status.
"The bond market is always right. It is telling the story that the system is breaking down," he said."The U.S. has a problem that they are clearly never going to fix. A growing number of nations no longer support the dollar system, and I think because of that the government will find it difficult to find enough buyers for U.S. Treasures. We could see the Fed step in soon and that will be interesting for gold.
"We are seeing a breakdown in the bond market. Something is wrong," he said."Gold might not react right away to these warning signs, but it will eventually react."