Gold prices are soaring at a rapid pace. The precious yellow metal has touched a new price high of $2640 and continues to leverage the current market momentum to scale new highs. As the metal inches towards a new high of $3000, the rising gold prices signal doom for the US dollar. Here’s how.
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Rising Gold Price And Its Connection To The US Dollar
A recent post uploaded by Bravos Research highlighted a stark connection between the surging US dollar prices and gold. Per a recent X post uploaded by the portal, rising gold prices have often signaled an economic storm underway, indicative of a possible economic meltdown, which may usher in a strong USD decline.
The portal outlined how gold started to surge rapidly in January 2007, a year before the infamous financial crisis of 2008, noting a 50% spike in its momentum.
“In January 2007, a year before the financial crisis, gold began trending higher. By January 2008—when the recession officially started—gold prices had surged 50%. This rise served as an early warning to investors that an economic storm was brewing.”
Before that, in 1972, Gold had yet again portrayed a similar price pattern, starting to spike rapidly. In 1973, the world encountered another financial crisis, and gold played a pivotal role in signaling an impending economic doom beforehand.
“Rewind to November 1972: Gold started rising a year before the 1973 recession. And the subsequent 50% market decline.”
The portal later shared how gold is currently repeating the same price patterns, making investors question whether this is once again signaling an impending US dollar doom.
“Fast forward to today: Gold is once again climbing, just as it did before two of the worst market drawdowns. The question is: Is gold flashing the same warning signal this time?”
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USD and Its Foes
The US dollar is constantly attracting new foes, with the BRICS and ASEAN alliances nagging it from all possible fronts. Both alliances have long been working towards establishing their own independent payment portals and currency mechanisms, which can deliver a fatal blow to the US dollar’s esteem.
The USD recently hit a fresh high amid positive payroll reports that ushered in a six-week rise for the currency. However, the dollar’s road to recovery is still dubious as it continues to battle with the multipolar currency concept or the rise of local currencies that continue to challenge or compete with the US dollar.
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