The Biden administration is testing out the adoption of the digital dollar, a virtual version of the physical cash you carry in your wallet.
Analysts predict that these central bank digital currencies (CBDCs) could lead to a higher price for gold.
If the introduction of a digital dollar is associated with economic uncertainty, inflation concerns, or the overall stability of the financial system, it could drive up gold prices as investors seek to protect their wealth.
Investors may decide to increase their gold holdings simply due to distrust of government-issued digital currencies.
Even without considering the impact of digital currency, gold prices are expected to reach record highs within the coming year.
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