Gold, Bitcoin, and major stock indices, including the S&P 500, are experiencing simultaneous rallies amid a weakening U.S. dollar. The Kobeissi Letter highlighted a record 0.91 correlation between gold and the S&P 500 in 2024, suggesting these assets are moving in tandem. The dollar is on track for its worst annual performance since 1973, with a 10% decline this year and a 40% loss in purchasing power since 2020. Market analyst Shanaka Anslem Perera described the situation as an 'illusion of prosperity,' as investors increasingly move away from fiat currencies. The Federal Reserve is anticipated to cut interest rates again in October, which could further impact the dollar's value.
Gold, Bitcoin, and Stocks Surge as Dollar Weakens
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