World Bank president Robert Zoellick has clarified recent comments about gold.
No, the head of the World Bank isn’t advocating a return to the gold standard.
“I don’t believe you can return to a fixed exchange rate system and that is the gold standard,” he later told the Foreign Correspondents Association.”
“Markets are already using gold as an alternative monetary asset because confidence is low…it is saying we have a problem that needs to be fixed.”
Gold prices have soared to record levels in recent weeks and are currently around $1,400 per ounce.
“There is an elephant in the room and that is what I want people to recognise,” Zoellick said.
He said on Wednesday: “I’m not advocating a return to the 19th century when money supply was linked to gold.”
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