The dollar is going down

Gold is leading the way to a weaker dollar, driven by a Fed on the back foot regarding interest rate policy. Recession plus higher inflation in 2026 will be the real problem

From the chart above, we can see that the dollar’s TWI and its value in gold have broadly tracked each other so far this year. They are obviously sending the same message, and it is to do with the dollar rather than speculative buying interest in gold.