The dollar cycle and gold
Gold is priced in dollars. Long dollar cycles matter more than daily moves.
Gold and the US dollar have a strong inverse relationship over multi-year horizons. Dollar strength is a headwind for gold; dollar weakness is a tailwind.
The DXY is a starting point, not the answer
The dollar index (DXY) is heavily weighted to the euro and yen. For a fuller picture, watch broad trade-weighted dollar indices published by the Fed and BIS.
The long cycles
Since Bretton Woods ended in 1971, the dollar has moved in roughly decade-long cycles. Gold's biggest bull markets — the 1970s, the 2000s, and the current cycle — have coincided with structural dollar weakness or credibility stress.
What to watch
US current account, real yield differentials versus other majors, and central bank reserve composition. Sustained diversification away from dollars into gold is the story of this decade.
Editorial disclaimer: DeepGold Academy content is educational and informational. Nothing on this page is investment advice.