Gold futures on Friday were trading modestly higher as weakness in the dollar, helped to fuel some modest buying in bullion despite a rally in stocks that would otherwise suggest waning appetite for assets perceived as havens.
The dollar on Monday was retreating 0.5%, after last week putting in a weekly gain of 1.8%, as measured by the ICE U.S. Dollar Index DXY, -0.44%, FactSet data show.
Last week, gold and silver prices came under pressure due to the mini rally in the dollar, which can make assets priced in bucks relatively more expensive to overseas buyers.
December gold GCZ20, 0.55% gained $4.50, or 0.3%, at $1,870.80 an ounce, after booking a 4.9% weekly drop on Friday—the steepest for a most-active contract since the period ended March 13, FactSet data show.
Meanwhile, December silver SIZ20, 1.22% headed 6 cents, or 0.3%, higher to reach $23.155 an ounce, following a weekly decline of a 14.9%, its sharpest weekly drop since the week ended March 13.
Moves for gold and silver also came as appetite for assets perceived as risky, like stocks, picked up to start the week. The S&P 500 SPX, +1.59% and Dow Jones Industrial Average DJIA, +1.33% were poised to rise to start trade for Wall Street, following gains in Asian and European stock markets.
A woman wearing a dress made of cash, Germany, 1923.
THESE are the shocking images that reveal the full horror of hyperinflation in post Great War Germany ñ when money was literally worthless. In 1923, Germany was hit by one of the worst cases of hyperinflation in history, with 4.2 trillions marks worth just one American dollar. This out-of-control inflation began somewhat mildly during World War I, as the German government printed unbacked currency and borrowed money to finance military expenditures. The strategy was to pay off the debts by seizing resource-rich territories and imposing reparations on the vanquished Allies. But when Germany lost the war and ended up with massive debts, including huge reparations to be paid to the Allies under the Treaty of Versailles. The country found themselves in economic crisis and increasingly unable to afford the hefty reparation payments.
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