![](https://images.ecency.com/DQmaL8f8MzC1x1RCBtuJTdTWA9H6hNcjzRPkHXAx3ktbZ9N/image.png)

While the cryptocurrency market is in a downward spiral, every other market is booming as the dollar weakens. In the last two days, DXY has fallen more than 3.5%. S&P500 bounced more than 5% and every major forex including EUR, GBP, and JPY rose from the depths of the goblin town. Needless to say, the prices of precious metals especially gold and silver are skyrocketing. Everything non-dollar is booming except the crypto market because of the recent FTX crash. Thanks, Sam.

![](https://images.ecency.com/DQmNYKPYHuvvXgCMAjfAZ9Y7Bi13Wf4tKjzye5jTwNWN7A9/image.png)
[https://www.fxpro.com/trading-tools/forex-economic-calendar]

So why is the market turning bullish all of a sudden? The most probable explanation is the strong CPI report that was released yesterday. The report shows a CPI annual inflation rate of 7.7% which is slightly better than predicted (7.9%). Market participants believe the Fed will stop raising interest rates sooner because the inflation rate is declining, which is why the DXY is falling and the prices of all assets are rising.

## GOLD
![](https://images.ecency.com/DQmWac64trxAev3rQBLiiH121qFgjsJ4LxKetTmYfbrvCKU/image.png)

I believe it is almost certain that gold will finally break out of its downtrend. It is currently trading above a key support level ($1730). Who knows, it could be a fakeout, but given how the dollar is currently losing value, I believe the likelihood of a new uptrend is greater.

![](https://images.ecency.com/DQmUCMUeUkkHierAvWwPmmtvYm4krm6nishuw1pKHbBbSjW/image.png)

But, if we zoom out to a weekly timeframe, gold has always been in an uptrend since 2001. No, the chart above is not a logscale chart. When we look at charts that show data over a decade, we usually use the logscale. This is evidence that gold is undervalued and that perhaps we have underestimated its potential upside. As the dollar keeps losing its value, which is inevitable, surely gold will increase in value exponentially.