Manipulation. A word that describes the precious metals market. So many times over the years we've heard news reports of certain banks and their agents (traders) being fined enormous amounts of money for violations of laws governing the trading of gold, silver and other markets. The price goes the way of the derivative until it doesn't. Why do I say this? As most people have noticed there has been nothing but BS spewed from the U. S. Federal Reserve mouthpiece and conspiring with it is the controlled media that uploads op-ed after op-ed hearsay upon hearsay parroting the same sh@¥ over and over. "Recession is around the corner", "Recession is transitory", " We're not in a recession".
All the creation of currency in the past. Specifically, since Spring, 2020. That's the inflation.
We're seeing the results of the currency creation. It's Higher priced food and goods.
Why haven't I referred to currency as money? Because it isn't. That's another story for another day. How does this all relate to my title? If you follow the price of gold you'll notice it has been heading south since the Summer of 2020. Setting aside The Bretton-Woods Agreement and subsequent August 15, 1971 Nixon speech it's apparent that the price of gold and the DXY (an index for the value of the U.S. Dollar relative to a basket of trading partner's currencies) have somewhat of an inverse relationship.
So when you here the Dollar is strong remember it is measured against 6 other currencies.
The strength of the dollar is measured using the U.S. Dollar Index aka DXY with some calling it the Dixie. It's an index (or measure) of the value of the United States dollar relative to a basket of foreign currencies, often referred to as a basket of U.S. trade partners' currencies. The Index goes up when the U.S. dollar gains "strength" (value) when compared to other currencies.
It is a weighted geometric mean of the dollar's value relative to following select currencies:
• Euro (EUR), 57.6% weight
• Japanese yen (JPY) 13.6% weight
• Pound sterling (GBP), 11.9% weight
•Canadian dollar (CAD), 9.1% weight
• Swedish krona (SEK), 4.2% weight
• Swiss franc (CHF) 3.6% weight
