Once you see it, you can't unsee it.
On the contrary, gold has risen despite continued dollar strength.
The enormous gains for gold in 2024 and 2025 are not explained by a round trip in the dollar index from 120 to 129 and back again. That's just a little side show in the bigger picture of dollar strength.
The dollar index has made steady progress out of the pit of despair at 85.46 in July 2011 under Barack Obama, the enemy of fossil fuels, to a place of relative strength today averaging above 120 in 2022 and 2023, 123 in 2024, and 125 in the first half of 2025.
Speaking of a weak dollar in this context is laughable.
Maybe the dollar is so strong again because the United States has become a net exporter of oil. The 1975 ban on oil exports was lifted in December 2015. Net imports of oil went negative for the first time since 1950 in 2020.
Gold is probably so strong in part because of increasing debt globally, which like rising prosperity helps drive demand for it as a hedge. Extreme poverty gripped half the world in 1950 but by 2020 it afflicts just 10%. Meanwhile gold production has nearly tripled over the period.
As a percentage of global GDP, global debt has gone from just above 100% of global GDP in 1980 to a whopping 235% of global GDP in 2024.
IIF CEO Tim Adams sounded the alarm on rising levels of debt while
speaking to CNBC’s Silvia Amaro at the World Economic Forum in Davos,
Switzerland. ... "We need sobriety . . .."
The global banking industry’s premier trade group said late last year that worldwide debt climbed to a record of $307.4 trillion in the third quarter of 2023, with a substantial increase in both high-income countries and emerging markets.
The IIF said it expected global debt to reach $310 trillion by the end of 2023, warning that elections in more than 50 countries and regions this year could usher in a shift toward populism that brings with it still-higher debt levels.
More.
Global debt finished 4Q at $281 trillion: 3.56x = $281 trillion, so x = $78.93 trillion global GDP.
US GDP in 2020 was $20.9 trillion, TCMDO was $83.49 trillion (almost 400%).
What could go wrong, right? You are fully invested in stonks, amirite?!