Markets

Gold Trade 'Over' While Dollar Stays Alive, Pros Say

CNBC.com
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Gold and other commodities may have seen their highs as interest in the dollar is unlikely to wane significantly, two experts said on CNBC.

As the dollar has strengthened and US Treasurys draw decent interest in auctions, the attraction of the gold trade has dropped.

Stocks fell more than 2 percent Monday morning as a drop in oil weighed on equities.

"There's not enough gold in the world and that's simply not the place to be," said Howard Simons, commodities analyst at Bianco Research. "That trade is over."

At the same time, speculation seems to have been overblown on whether the three biggest buyers of Treasurys—Russia, China and Japan—will stop anytime soon, said Meg Browne, currency strategist at Brown Brothers Harriman.

That interest will extend to the US dollar, which will continue to be the world's reserve currency, she said.

"Where else are they going to invest?" Browne said. "We have the deepest and most liquid markets in the world. Many things are priced in US dollars. It's going to be hard to find some other currency that's going to provide as much liquidity."