{"id":16520,"date":"2026-01-28T11:56:35","date_gmt":"2026-01-28T11:56:35","guid":{"rendered":"https:\/\/microvibenews.com\/?p=16520"},"modified":"2026-01-28T11:56:35","modified_gmt":"2026-01-28T11:56:35","slug":"down-arrow-button-icon-98","status":"publish","type":"post","link":"https:\/\/microvibenews.com\/?p=16520","title":{"rendered":"Down Arrow Button Icon"},"content":{"rendered":"

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The price of gold hit another new record yesterday, soaring above $5,300. It\u2019s up an astonishing 3% this morning, as measured by the Comex continuous contract. Gold has gained 22.31%, year-to-date.<\/p>\n

It\u2019s not hard to see why. Gold is outperforming as a safe-haven for investors who are bailing out of assets being dragged down by the falling U.S. dollar.\u00a0<\/p>\n

The dollar fell 1.3% yesterday against a standard index of foreign currencies. It\u2019s down over 2% year to date. One euro now buys $1.20. The British pound is worth $1.38. The dollar hasn\u2019t been this weak for years.<\/p>\n

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U.S. President Donald Trump said he was totally fine with that. \u201cNo, I think it\u2019s great,\u201d Trump said when asked by reporters yesterday. \u201cI think the value of the dollar \u2014 look at the business we\u2019re doing. The dollar\u2019s doing great.\u201d<\/p>\n

The president is hoping that a sinking dollar will make U.S. assets cheaper and thus boost America\u2019s export trade.<\/p>\n

The risk is that the rest of the world loses faith in the dollar\u2019s status as the world\u2019s \u201creserve currency,\u201d the notion that the dollar, and dollar-denominated assets, will always be the safe call. No one on Wall Street seriously thinks that the U.S. is in danger of losing reserve status anytime soon\u2014but they sure are talking about it a lot.<\/p>\n

\u201cThe dollar is not likely to lose reserve status overnight,\u201d UBS\u2019s Paul Donovan said earlier this week. \u201cHowever, the decline of the U.S. internationally and international investors\u2019 questions over key issues like rule of law mean it is losing market share. Moreover, as trade stagnates (and may retreat), reserve status becomes less important. International investors are not likely to flounce out of dollar assets in a dramatic exit, but may be less interested in accumulating additional dollar holdings.\u201d<\/p>\n

This morning he told clients: \u201cThe risk of the weaker dollar is the narrative of relative U.S. decline, with implications for capital flows. Bonds, not inflation, are most vulnerable to dollar weakness.\u201d\u00a0<\/p>\n

George Vessey, the lead FX and macro strategist at Convera, told Fortune<\/em>: \u201cThe common thread is erratic U.S. policymaking, which has revived the dollar\u2019s risk premium and pushed investors to rotate out of dollar?denominated assets or hedge their exposure.\u201d<\/p>\n

ING\u2019s Chris Turner wrote that he thinks the dollar could lose another 3% against foreign currencies.<\/p>\n

\u201cWe had not been expecting the extent of this dollar sell-off so quickly. Instructive will be how the dollar performs around tonight\u2019s [Federal Open Market Committee] meeting. Our take is that a Fed shifting to a pause could provide the dollar with some support. However, were any rally to prove weak and the dollar to end up lower on the day, even if short-dated U.S. yields rose, then it would signal very bearish dollar momentum,\u201d he said in a note.<\/p>\n

\u201cWe could be well on the way to a decent 3% leg lower in the dollar. It is hard to back that up with fundamentals, but the burden really is now on the dollar to prove otherwise.\u201d\u00a0<\/p>\n

With the greenback failing in its mission as a \u201cstore of value,\u201d investors piling into gold instead, and central banks shifting toward bullion as a hedge against the declining dollar, you might expect Bitcoin to be doing well.\u00a0<\/p>\n

It is not.\u00a0<\/p>\n

The cryptocurrency was priced at $89.4K this morning\u2014well below its record highs. It\u2019s down over 13% over the last 12 months.\u00a0Ed Yardeni of Yardeni Research had the best headline on this topic yesterday: \u201cIs Gold The New Bitcoin?\u201d<\/p>\n

All this drama has somewhat overshadowed the U.S. equity market: The S&P 500 hit a new record high yesterday, up 0.41% at 6,978.6. Futures on the index were up 0.33% this morning. But for foreign investors, yesterday\u2019s 0.41% gain was more than offset by -1% haircut imposed by the dollar\u2019s decline\u2014a rare example of a day when dollar assets lost value globally despite going up.<\/p>\n

Taken together, it seems that traders are betting that Trump\u2019s \u201cweak dollar, better exports\u201d strategy will be good for equities\u2014but just in case the president is wrong, they\u2019re buying gold as well.<\/p>\n

Here\u2019s a snapshot of the markets ahead of the opening bell in New York this morning:<\/strong><\/p>\n