Gold to Gain on Massive Currency Debasement

Gold last traded at $1,938 an ounce. Silver at $26.75 an ounce.

NEWS SUMMARY: Precious metal prices steadied Friday amid mild profit-taking and a firmer dollar. U.S. stocks traded mixed on upbeat economic data, but were capped by concerns over a new coronavirus stimulus bill.

Skybridge/Bloomberg---"Gold will extend its record-setting rally on 'massive currency debasement' and expectations for further stimulus, according to SkyBridge Capital, which recently added exposure to the metal after exiting in 2011. 'When you think of currency debasement the question is, what is the dollar going to weaken against, and when you look around the globe, it's hard to be excited about alternative currencies,' said Troy Gayeski, co-chief investment officer and senior portfolio manager. 'So, gold is obviously a natural alternative currency.' The precious metal surged to a record well above $2,000 an ounce earlier this month - although prices have stumbled since then - as central banks including the Federal Reserve unleashed vast stimulus to support economies hurt by the coronavirus pandemic. That's spurred bets that paper currencies will lose their value as money supply jumps. Goldman Sachs Group Inc. calls gold the currency of last resort and has forecast more gains....Ultimately, the driver for gold is 'you have massive currency debasement, particularly in the U.S.,' Gayeski said."