The U.S. Dollar Index is testing a key technical level that has triggered major rebounds in the past—making this an important setup for commodities and precious metals investors to watch closely.
Jan beat me to what I was also going to say. That correlation is indeed interesting. A lot going on at the moment so thank you for being precise with your words and analysis (as per usual).
Yes—my theory is that the 2020 COVID stimulus mania played a major role. The Fed’s massive money printing fueled a historic bubble in stocks and sparked a rally in commodities. That stock market boom attracted a surge of foreign capital, which in turn drove the dollar higher. Interestingly, the dollar has fallen sharply alongside stocks since the start of this year.
I don’t expect this unusual situation to last much longer, as I believe the historic inverse relationship will reassert itself.
If we accept the thesis of gold price suppression to hide fiat dollar inflation, can we not also accept a thesis of US dollar index manipulation to make the dollar appear strong?
I get the sense that gold’s rise is somewhat constrained/managed (damage control?), so am wondering if USD index manipulation isn’t required as part of this broader mechanism.
the u.s. dollar has been a hoax since the "Fed" was created well over 100 years ago. this is a private bank with no reserves who charges us interest on creating "money" out of thin air. the biggest financial hoax in history. they are, in fact, owned by 12 israeli banks. our gold was stolen almost
80 years ago and the dollar is backed by NOTHING. that's right, ft. knox and west point are empty. no required formal audits in decades. i don't care if the dollar index goes to two dollars- gold and silver are going to the moon- then then to pluto. they have been the only real money for, what?, 5,000 years now.
Jan beat me to what I was also going to say. That correlation is indeed interesting. A lot going on at the moment so thank you for being precise with your words and analysis (as per usual).
Thank you :)
Interesting that the correlation between the dollar and commodities have changed…
Yes—my theory is that the 2020 COVID stimulus mania played a major role. The Fed’s massive money printing fueled a historic bubble in stocks and sparked a rally in commodities. That stock market boom attracted a surge of foreign capital, which in turn drove the dollar higher. Interestingly, the dollar has fallen sharply alongside stocks since the start of this year.
I don’t expect this unusual situation to last much longer, as I believe the historic inverse relationship will reassert itself.
If we accept the thesis of gold price suppression to hide fiat dollar inflation, can we not also accept a thesis of US dollar index manipulation to make the dollar appear strong?
I get the sense that gold’s rise is somewhat constrained/managed (damage control?), so am wondering if USD index manipulation isn’t required as part of this broader mechanism.
Excellent as usual.
Our H1/2025 target 94 for DXY.
Chart on X (@Lowercosta).
Charlie.
the u.s. dollar has been a hoax since the "Fed" was created well over 100 years ago. this is a private bank with no reserves who charges us interest on creating "money" out of thin air. the biggest financial hoax in history. they are, in fact, owned by 12 israeli banks. our gold was stolen almost
80 years ago and the dollar is backed by NOTHING. that's right, ft. knox and west point are empty. no required formal audits in decades. i don't care if the dollar index goes to two dollars- gold and silver are going to the moon- then then to pluto. they have been the only real money for, what?, 5,000 years now.