Americans are about to see their purchasing power destroyed in the near future.
Near future as in within the 4 years of Trump 2.0 administration.
Trump 2.0 is pursuing a dollar devaluation policy, to improve its competitiveness and to deflate its debt.
In early 2008 as US began its GFC, the DXY sank to 72.5, if it returns to that level again, it is -30% from current level. And Trump may just want to keep it there.
Under such situation, yen carry trade reversal (borrowing in yen to invest in plunging US assets make no sense as USD plunges) is almost certainty along with foreign divestitures of US assets, the elixir that assured US stock superiority over all others is removed.
Gold therefore should rise if DXY is to fall -30%, but AUD would also rise relative to USD, hence AUD Gold may be impacted by the sharp dollar fall.
And this is why along with AUD Gold, we need to have USD Gold, and since we can't hedge the currency fluctuations through physical Gold, we can do it via QAU ETF (ticker: QAU).
