A scenario-based thinking tool for the gold price
Gold is priced in dollars on global markets. When the dollar strengthens against other currencies, gold becomes more expensive for global buyers, and demand weakens. This is the foundation of the historical inverse correlation between gold and the US dollar index.
However, this correlation is not absolute. During crises, capital simultaneously flows into cash and gold, allowing both to rise as safe haven assets.
Furthermore, the domestic price of gold is determined by the local exchange rate. Even if the global ounce price falls, a depreciation of the local currency against the dollar can drive local gold prices higher. Therefore, a "rising dollar" alone is insufficient to determine market direction; the underlying cause and nature of the dollar's strength are the decisive factors.