Gold price makes a comeback: Russia ditches U.S. dollar, gold stocks best buy since 1980s
(Kitco News) After dropping more than $40, gold is making a comeback following another disappointing jobs report out of the U.S.
Here's a look at Kitco's top three stories of the week:
Cryptocurrencies are risk-on assets, which is why they are more closely aligned to commodities like copper and oil.
"There is good inflation, and there is bad inflation. Good inflation is when demand pulls it. That's what bitcoin, copper and oil hedge. Gold hedges bad inflation where supply is being curtailed," Goldman said.
The decision means selling $40 billion of U.S. dollar assets. The fund holds Russia's oil revenues with a total value of more than $185 billion.
The one ratio to monitor is the XAU-gold ratio, Timothy Ord, president and editor of The Ord Oracle, tells Kitco News.
"Gold stocks are a way better buy right now than gold itself … Right now, the XAU-gold ratio is around point-zero-nine, which is cheap compared to historical standards and its previous high of above point-three-five," Ord said.