Gold standard: Is the precious metal still a safe haven?

Investors have questioned the ‘safe haven' status of gold as the US dollar shows signs of ending its long-term decline.

The price of gold has, until very recently, been boosted by a number of factors, including a lack of faith in the sustainability of global currencies such as the euro, as well as climbing demand. During the peak of the financial crisis, the very real prospect of the end of the European currency bloc, coupled with falls in most asset classes, helped drive gold to record levels. Undoubtedly it was also impacted by the weakness in the purchasing power of the US dollar: since 1999, the dollar has fallen as much as 80% in value on this scale. Dollar decline This staggering decline lif...