US dollar weakens further as alternative assets gain favor

Right now, the US dollar is seriously struggling. It’s dealing with huge debt, and other problems like countries turning their backs on it and potential conflicts are just beating it down more. This is making the dollar less important worldwide.

Gold Prices Soaring, Dollar Suffers

Gold is hitting new highs, now at $2,350 an ounce. It’s just $20 away from an even higher price, which would mean the dollar is in even worse shape.

The dollar’s problems come from a bunch of things. The US owes over $34 trillion, which is really bad for the stock and bond markets. On top of that, the US keeps printing money to try to fix things, but that’s just making it worse. It’s like they’re trying to put out a fire with gasoline.

“The US owes $35 trillion, growing fast. Interest is now over 20% of what the government makes. People see US bonds as risky. They sell them and buy gold instead. The US used to just print more money to keep things going and stop the economy from tanking, which made inflation go nuts. They also upped interest rates to try and keep the dollar strong.”

Gold is trading $20/ounce away from all time record closing highs.

A close above $2,390/ounce (spot) will trigger a new record closing low for the US Dollar coupons. pic.twitter.com/PYabQ9YMkb

— Peter Spina ⚒ GoldSeek | SilverSeek (@goldseek) May 10, 2024

US Economy Taking Hits Across the Board

Everything important in the US economy is going downhill. A big expert, DaiWW, says that the US is making less power, the government is making less money, and factories are slowing down. AI isn’t doing much yet, and the only thing growing is stuff like shopping and services, which isn’t really solid.

“America’s not growing; it’s going backwards. We’re making less power, the government’s broke, and factories are quiet. AI’s still mostly hype, and the only thing we’re good at now is selling stuff, which isn’t enough.”

As the world moves towards more countries having power, not just one, the dollar could keep dropping if things keep going this way.

India has entered into a major trade partnership with Nigeria by moving away from the US dollar.

Both countries will use local currencies in the bilateral trade agreement for the energy, pharmaceutical and transport sectors. pic.twitter.com/yUVCYUMdtw

— Sprinter infofactory (@Sprinter00000) May 10, 2024

New Challengers to US Dollar

Countries like China and Russia have stopped using the dollar already, and now India and Nigeria decided they won’t use dollars in their deals either. They’ll use their own money instead.

BRICS countries (Brazil, Russia, India, China, South Africa) are really pushing to get away from the US dollar. China’s leader even said the US can’t push countries around anymore. They’ve got other countries to stop using dollars too and use their own money, which makes their economies stronger.

What’s making countries dump the dollar is how the US uses it like a weapon, putting sanctions on countries. The move away from the dollar has just started, and BRICS plans to keep it going for a long time. The next ten years will be tough for the dollar as it faces challenges from all over.

The US won’t just sit back. It’s going to fight against BRICS and try to keep its place in the world’s money scene. What happens next in money around the world is going to be a big deal to watch.

There you have it. From the gold prices to big global shifts, the dollar is having a rough time. And with countries teaming up in new ways, it’s not going to get easier any time soon. But don’t count it out yet; the US isn’t known for giving up without a fight.