New Delhi, March 9 -- The strength of the US dollar as measured by the Dollar Index (DXY) peaked at 114 in September 2022, a 20-year high. It has been falling since then, hitting 97 on 28 February 2026, the start of the Iran war.

DXY measures the dollar's strength against a basket of currencies. Gold, which was at $1,700 per ounce in September 2022, has more than tripled to $5,274 per ounce on 28 February. Over this period, the global de-dollarization narrative of a gradual erosion in the dollar's use as a reserve currency gained momentum.

Globally, central banks have ramped up their gold holdings in preference over dollar assets, strengthening that story.

At the start of the Iran war, many expected gold prices to spike and DXY to bare...