Dollar is negative against major peers; gold, copper, silver hit record highs. Questions whether this is debasement trade and if metals are ripe for a drop.
Speaker1
Mark Cudmore
Current metals rally is driven by dollar diversification (debasement trade) - people reducing overexposure to USD due to lack of attractive alternative currencies, leading them to pile into real assets like precious metals.
Mark Cudmore
Metals look overextended and frothy (silver up ~60% YTD), but trying to pick tops has been losing strategy. We're in a frothy end game but doesn't mean start shorting today.