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Investing in Precious Metals and the Decline of the Dollar
Speculation suggests that Saudis might invest in Chinese goods or gold instead of Chinese government bonds. A managed decline in the dollar over the next nine to 12 months could benefit the United States. The surge in gold prices was influenced by Waller's comments on Fed's policy shift towards the front end of the curve, which is considered more inflationary. Additionally, the banks requesting a permanent exemption for treasuries allowed them to buy unlimited treasuries with no capital requirements, acting as a form of quantitative easing through the banks.