In a new turn of events, the US dollar is surging at a rapid pace, with gold (AUX) dropping to its lowest levels since September 2023. The yellow metal is trading at $2618, slowly recovering from the slump and push that it had faced after the dollar resurfaced back on the radar.
Also Read: XRP Forecasted To Reach $3, Here’s When
US Dollar Surges As Gold Dips: What’s Happening
The US dollar has trampled gold in a recent value surge. The recent administration change in the US is further driving the greenback rally, helping it claim new ascents. The Trump administration has made its stance clear about the American currency, adding how it will be prioritizing the USD and may impose a stricter policy change to curb de-dollarization initiatives.
Trump has vowed to hit back at nations that have expressed their desire to ditch the US dollar. In one of his interviews, the president-elect made his opinion known to the world, adding that he would impose taxes on nations moving away from the dollar to bolster the value of the American currency.
In an alternate scenario, experts are also worried that Trump’s possessive USD policies could inflate the US dollar by making it overvalued. This development is also spelling trouble for global economies and may usher in a range of new unforeseen circumstances.
“The risk is that the US dollar—which is expensive already—becomes more obviously overvalued, and this could increase the risk of global financial instability.”
The US dollar index is currently projecting a strong stance, sitting at 106, up 0.08% at press time.
Also Read: Billionaire Investor Laments Selling Billions Of Bitcoin (BTC) Early
AUX Plummets But Recovers Slightly As New Geo-Political Changes Persist
The prices of gold are facing intense pressure from the US dollar, but the yellow metal is holding its ground for now. AUX has slightly recovered from its fall, primarily due to changing global political narratives. The Biden administration recently permitted Ukraine to use its long-range missile ATACMS to protect its borders and attack Russia, inciting heavy market uncertainty.
The development compelled investors to once again seek haven in gold, which helped the precious yellow metal recover some of its lost fortunes.
Per Rashad Hajiyev, a notable analyst, once the gold selloff cools down, the metal will commence its rally to claim the coveted $3000 mark again.
Also Read: Why Nvidia’s Q3 Results Could Shake the S&P 500 This Week