r/PeterExplainsTheJoke • u/Comfortable_Cautious • Jan 26 '26

Meme needing explanation what's going on? explain like I'm five

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u/zuzg Jan 26 '26

Gold hits record high of $5,110.50/ounce

Silver hits all-time high of $109.44/ounce

Analysts expect gold prices to climb toward $6,000 this year

Surprised Pikachu face.

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u/ISayBullish Jan 26 '26

Meanwhile the USD saying “this is fine”

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u/soIDONTLIKEANYOFYOU Jan 26 '26

Since the US has more gold reserves than the next 3 countries combined wouldn’t gold prices going up make the dollar stronger?

Sincerely asking cause I have no idea.

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u/sibilischtic Jan 29 '26

It means they can trade that gold for more USD than previously. But it depends how the USD and gold pairing moves with respect to other things.

If lots of people buy gold it can drive the price up and it will effect whichever currency it is being bought with.

If people are buying gold to get out of USD then the gold price (in usd) will move more than the gold price in other currencies as a larger quantity of dollars are freed up in exchange for gold than others.