Gold is up to $1,851, and could soon hit $2,000.
Not only is the coronavirus story worsening, tensions with China are through the roof.
For example, China’s consulate in Houston was just ordered to shut down, triggering further chaos between it and the U.S. If not reversed, China said it will retaliate, calling the move an “unprecedented escalation.”
“China urges the U.S. to immediately rescind its erroneous decision, otherwise China will undertake legitimate and necessary responses,” they said, as quoted by Politico.
Sending gold even higher, the U.S. dollar is taking a hit.
“The dollar is very vulnerable now,” Boris Schlossberg, managing director of G-10 currency strategy at BK Asset Management told MarketWatch. “Massive spending and the general lack of allure of the U.S. dollar could be more of a threat to the dollar than people appreciate.”