2025 is the worst time for the US dollar and should be the best in gold prices. The DXY index tracks USD performance shows currency trading at 98.3 level on Monday’s opening bell. It has been almost 10% immersed since the start of the year, attracting heavy bearish feelings to the charts. The year began at a high of 109.25, but over the past four months I have been ruthlessly immersed in the index.
Commodity traders have lost their trust in the US dollar and are relying on gold instead, as they have been the most sought after asset since 2022. Gold prices have skyrocketed nearly 29% since the start of the year, with 2025 trading at $2,660. That price hit $3,385 at the opening bell on Monday, surged nearly 1.5% and rose nearly 50 points.
Gold prices show extreme bullish sentiment, but the US dollar sees a harsh bearish. The two main assets are separated by two poles, one producing a stellar return and the other printing a massive loss. The USD decline comes as a shock as currency investors were bullish on the outlook in 2025.
Why is the US dollar crashing and gold prices rising?
Financial experts have revealed that Trump’s recent trade tariffs have played a pivotal role in the decline in the US dollar and rising gold prices. The uncertainty in the global trade sector has led to a decline as investors’ trust fell. Institutional funds, retail investors and central banks are investing heavily for sparkling metals and profits.
Central banks of countries such as China, Russia, India, Brazil and South Africa are steadily accumulating gold in their reserves. Just recently, the Polish central bank has accumulated 16 tons of precious metals in its reserves. So trust in the US dollar has diminished while gold trust has skyrocketed prices this year.
