Dollar Dives as Central Banks Abandon US Currency

The dollar's decline slowed down on Tuesday as it recovered some of its losses from Friday. The BBDXY index, which measures the US dollar's value against a basket of other currencies, rose to 1,200 after being below that mark earlier in the day.

However, this recovery was not sustained overnight, and the dollar continued to fall in early trading on Wednesday. The price of gold, on the other hand, has been steadily rising and gained $40 on Tuesday to close at $4,417.

The SPTs, or short-term price trends, are back in play, with gold and silver being targeted again. However, analysts warn that this recovery will be checkered with days like today, giving procrastinating investors opportunities to buy.

Central banks continue to reduce their dollar holdings, with a recent survey showing 74% of respondents expect the dollar's share of global reserves to fall over the next five years. The price of oil remained steady at an $84 handle overnight and is expected to open around that mark today.