However, in my humble opinion, gold cannot replace USD as the main Foreign Currency Reserve Fund, but it will be the supplement to the USD as the correlation is somehow very low if not negative to each others. In this period of time, there is still no strong evidence to tell us that Gold can replace USD as the main Foreign Currency Reserve Fund, however the FOREX market will remain unstable until the lawmakers approve the above increment of ceiling of debt level.
Quote from Reuters:
(Reuters) - Gold fell more than 1 percent on Monday as U.S. lawmakers neared an agreement to raise the country's debt ceiling.
The most-active U.S. gold futures fell more than 1 percent to $1,614 an ounce and spot gold was down 0.9 percent at $1,611.89, off a low of $1,606.79.
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