Investment banks forecast dollar to head lower next year

“Deutsche Bank, Goldman Sachs and Bank of New York Mellon all agree that after a patchy decade of gains, next year will see the dollar decline as global growth concerns ease, boosting demand for riskier bets at the same time as the US central bank is holding or even cutting rates.”

A consensus seems to be developing among major players that the dollar is headed for a decline in 2020. That could translate to a positive for gold. Since May gold and the dollar have risen in tandem, but a closer look at the overlay chart below reveals that the long-established negative correlation between the two might now be in the early stages of reasserting itself.