The “strength” in the dollar appears to have been the proximate cause of the recent selloff in gold. The rise in the dollar index (DXY) is taken by most to mean that the dollar is actually strong. The chart below shows the inverse correlation between the DXY and the dollar gold price. This discussion will examine the very meaningful difference between the dollar’s relative and absolute strength, and look at the widening fissures beneath the façade of strength – fissures that, as yet, appear to have had little impact upon the investment consensus.