[Citizen8396]

> the dollar has lost 51% of its value in the past 12 months.

It has not. The article says gold has increased 51%. USD isn't doing great, but you're way off:

"The value of the U.S. dollar against other currencies dropped about 11% in the first half of this year, the biggest decline in more than 50 years, ending a 15-year bull cycle ... Morgan Stanley Research estimates the U.S. currency could lose another 10% by the end of 2026."

https://www.morganstanley.com/insights/articles/us-dollar-de...

[teleforce]

The gold price drastic increase and USD worst decline is to be be expected, and it's mainly due to the end of petrodollar agreement discussed on HN last year [1]. Somehow the Nasdaq news link is dead now but the Firstpost news is a similar one [2].

The top comment is a golden example of denial (pardon the pun), "This is itself inconsequential" [3]. This can be another Dropbox comment moment of HN. The comment also predicted that "Things will keep running as today probably for the next 20 years", and here we are in just after a year.

The negative effect to USD due to the end of petrodollar is imminent and the writing is on the wall.

[1] U.S.-Saudi petrodollar pact ends after 50 years (325 comments):

https://news.ycombinator.com/item?id=40673567

[2] What was the US-Saudi petrodollar deal that lapsed after 50 years?

https://www.firstpost.com/explainers/what-was-the-us-saudi-p...

[3] U.S.-Saudi petrodollar pact ends after 50 years (top comment):

https://news.ycombinator.com/item?id=40674911

[jrajav]

What makes you think the decline is _mainly_ due to this, and not due to other events this year that could plausibly have a significant effect on the value of the dollar?

[teleforce]

I'd say the gold price (the OP topic) sudden rise after being very consistent for several decades is mainly due to the recent ending of petrodollar.

Somewhat related is the Turkey-Iran "oil for gold scandal" where gold is being used to bypass the sanction against Iran for oil and gas transactions [1].

When there is no petrodollar arrangement then as this scandal has shown, gold is naturally the most trustworthy "currency" for the oil and gas transaction, easily worth several billions per year for a single country like Turkey.

On the very basic, economic is all about supply and demand, with gold is on higher demand for the lucrative oil and gas transactions, then the demand of the alternative USD is naturally lower compared to during petrodollar era.

[1] 2013 corruption scandal in Turkey:

https://en.wikipedia.org/wiki/2013_corruption_scandal_in_Tur...