In the long term, these changes are showing the dollar continues to lose its purchasing power due to central banking's bad fiscal policy. As the dollar declines, gold prices are likely to respond with upward movements throughout the remainder of the year.

The Bloomberg Dollar Spot Index halted a drop of up to 1.2% after William Dudley, Federal Reserve Bank of New York president and chief executive officer, said policymakers could potentially raise interest rates as soon as next month. According to Bloomberg:

The dollar has lost ground over the past month as lackluster data in the world's biggest economies fueled speculation the Fed would be slow to raise borrowing costs."

Aside from a weak dollar, today we got another reminder that inflationary pressures are continuing to mount. Despite the Department of Labor's Core Consumer Price Index (CPI) numbers showing inflation stagnating, real inflation is alive and well.