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Dollar’s year of living dangerously awaits

Central banks around the globe are ending 2021 with the highest gold holdings in 31 years.

Yet the real story as monetary authorities recalibrate foreign-exchange reserve holdings is how the US dollar is on the losing end of these shifts. And in the year ahead, this trend could become a systemic problem.

True, the dollar’s value versus gold has been falling for more than a decade now. That’s a product of ultraloose Federal Reserve policies flooding the globe with record liquidity. Now, even as the Fed moves to tighten the credit spigot a bit, other monetary powers are pivoting to gold.



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