After having studied more carefully the current charts of record growth in gold prices, analysts came to the conclusion that gold is gaining mostly because the US dollar is devaluing. Thus, the weakness of the US currency has prompted the dazzling rally of the precious metal. 

The greenback is giving ground across the market largely due to the Fed’s decision to turn up the money-printing press. In addition, the longer the regulator's printing press runs, the weaker the US dollar becomes. According to TD Securities, a Canadian investment bank, the American dollar is falling against the backdrop of large- scale stimulus measures taken by the Central Bank. Notably, the US government has already introduced several aid packages totaling $2 trillion to help people and businesses struggling with coronavirus consequences. Taking into account the volumes of printed dollars, it is not hard to fathom that inflation is just around the corner. Besides, the US dollar has already started declining dramatically and investors are revising their portfolios in favor of other safe-haven assets. No wonder, the great majority of traders choose gold as it is one of the most stable and reliable assets.

Not long ago, the US Congress voiced its plans to continue stimulating the domestic economy. It means more financial injections. Therefore, the greenback will be unable to recover. Gold, on the other hand, is likely to hit new highs in the near future.