The US dollar continues to fall sharply in value against other major currencies, continuing the trend that saw it have its steepest annual drop in almost a decade in 2025. The dollar fell by 1.3% against a basket of currencies on Tuesday (January 27), meaning it has already fallen by 2.6% since the start of 2026. It slumped by 9.5% in 2025.
Gold has been on a remarkable surge for the past 12 months, having almost doubled in value since this time last year. It is on its biggest rally since the 1970s and while the run has accelerated over the past year, its gains have been notable since late early 2019 when it was valued at just over $1,280 per troy ounce.
Magical thinking is indispensable to understanding Team Trump's economic policymaking. The White House often seems to believe two opposing policies can work together while one policy can do two or three contradictory things. A heavy dose of hocus pocus will be needed to make the administration's dollar policy work in the interest of the United States, for it appears that they want to end the US dollar's supremacy in global finance.