Since 2002, the dollar has been falling continuously. Weighted by a basket of currencies, the US dollar has depreciated by 37% since 200 1. After September 2007, affected by the subprime mortgage crisis, the US dollar fell sharply, and the exchange rate against 16 major currencies fell across the board. In 2008, the trend of the US dollar exchange rate was full of uncertainty.

As the US economy may decline or even decline, the subprime mortgage crisis may continue to worsen, and investors' confidence in holding US dollar assets will be affected. Central banks will gradually reduce their holdings of US Treasury bonds, and the US dollar may continue to fall in 2008. However, due to the reduction of the current account deficit in the United States, it may continue to be maintained after the short-term decline of the US economy.

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Due to inflation during World War II, inflation after World War II, inflation during the Korean War and the Vietnam War, and another round of inflation between the two inflation, the price level in the United States tripled from 1934 to 197 1. At the same time, relying on its strong economic strength and gold reserves, the United States kept the exchange rate of gold against the US dollar unchanged, overvalued the US dollar and underestimated gold.

At this time, central banks began to reserve gold, converting their dollars into gold to increase their reserves. From 65438 to 0948, the United States owned 70% of the world's monetary gold reserves, or 700 million ounces.

With the economic recovery and rapid development of Japan and Western Europe, the hegemonic position of the United States has been declining, and the US dollar has aggravated the deterioration of gold supply and demand. In the 1950s and 1960s, in order to develop the domestic economy and cope with the balance of payments deficit caused by the Vietnam War, the United States continuously increased currency issuance, which made the dollar far below the parity of gold, making the official price of gold more and more a wishful price for buyers.

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