Analyst: Concerns about the US dollar drive investors towards gold

Francesca Fornasari from Insight Investment stated in a report that investors seeking alternatives to the dollar prefer gold over other developed market currencies. "This may reflect the severe fiscal outlook facing traditional safe-haven currencies like the yen and euro, as evidenced by France's budget issues and concerns about the next leader of Japan's ruling Liberal Democratic Party." She noted that the dollar continues to face adverse factors from overvaluation and unsustainable U.S. fiscal prospects. She mentioned that as investors question American exceptionalism and U.S. policymaking, support for the dollar has weakened. Insight Investment maintains a short position on the dollar, expecting it to decline. The DXY dollar index fell 0.2% to 98.565