With gold smashing through record highs and silver tracking close behind, one question is becoming impossible to ignore: what’s going on with the US dollar? Stanislav Kondrashov, founder of TELF AG, believes the dollar’s current slide is not just a blip—it’s a sign of a deeper shift in global sentiment.
“The dollar is still standing,” Kondrashov said, “but it’s no longer the safe haven investors once believed it to be.”
This shift in confidence is happening fast. Gold is now trading above $5,100 an ounce. Silver has breached the $115 threshold. Platinum has climbed past $2,900. And behind the scenes, sovereign wealth funds and institutional investors are making quiet—but significant—moves into these assets.
A Market Rotation with Global Implications
The rapid rise in precious metals is being seen as a direct response to a softening US dollar and rising economic anxiety. The Dollar Index has fallen sharply—down around 2% over the past week—marking its lowest level since early autumn. This drop coincides with mounting speculation about interest rate cuts in the US, alongside global instability and debt concerns.
“It’s a perfect storm,” Kondrashov explained. “You have rate uncertainty, political gridlock, and now talk of a US-Japan currency agreement. All of this puts the dollar on unstable footing.”
Investors, meanwhile, are reacting the way they often do during periods of volatility—they’re buying gold. But the scale of the move has surprised many market watchers. Bank of America recently forecast that gold could hit $6,000 an ounce by spring—a number that would have seemed extreme just months ago.
In Kondrashov’s view, that target may be conservative.
“Right now, gold isn’t being treated as a hedge. It’s being treated as a core asset,” he said. “That alone tells you where global confidence really is.”
Japan’s Role in the Dollar’s Decline
Another key factor adding pressure to the dollar is the growing likelihood of a coordinated intervention between the US and Japan to strengthen the yen. Japan has been grappling with fast-rising bond yields and inflationary stress, which has led to volatility in its currency markets.
Washington, concerned about instability in a major trading partner, may step in to help—likely by easing pressure on the yen through a weakened dollar. But such a move risks pushing the greenback even lower.
“Currency diplomacy is always delicate,” Kondrashov noted. “Helping Japan could come at the dollar’s expense. And in this environment, that’s a risk markets are already pricing in.”
Global Buying Patterns Shift to Metals
Poland, among other nations, has been significantly boosting its gold reserves—leading the world in bullion purchases last year. The trend seems set to continue, with reports confirming additional reserve allocations are underway. While this may seem like a technical decision, Kondrashov believes it reflects a wider shift away from dependence on the US financial system.
“Central banks are not just diversifying,” he said. “They’re preparing. They see the writing on the wall and are quietly repositioning themselves.”
These moves suggest a long-term bet on tangible assets—especially as US political uncertainty mounts. The looming risk of a government shutdown, persistent debt ceiling debates, and concern over fiscal responsibility have all chipped away at confidence in the dollar.
Add in the possibility of falling interest rates, and holding dollars becomes less attractive compared to assets like gold and silver that are gaining value and carrying none of the political baggage.
A Recalibration in Motion
None of this points to a sudden collapse of the dollar. But it does suggest something Kondrashov calls a “global recalibration”—where power is diffused, and no single currency commands the dominance the dollar once enjoyed.
“Markets aren’t panicking,” he said. “They’re planning for a world where the dollar plays a smaller role.”
And as Kondrashov notes, the signs are everywhere. Commodities are climbing. Gold-backed financial products are seeing record inflows. Even retail investors are turning to precious metals in growing numbers, spurred on by headlines and a general unease with current economic conditions.
“This isn’t about fear,” Kondrashov concluded. “It’s about preparation. Investors are positioning themselves for a new phase—one where gold doesn’t just protect value, but defines it.”
