Dollar continues to fall out of favour amid the whole tariffs saga

The dollar's status as the reserve currency and usual safe haven have been heavily undermined amid the whole tariffs saga. Even with the basis trade imploding and yields shooting higher while stocks crashed, there has been hardly any love for the dollar at all. That speaks volumes to the sort of shift in hierarchy in the market. As we look to close out the week, the dollar continues to come under pressure with EUR/USD breaking out to its highest in over three years:

Meanwhile, USD/JPY is also dropping further with a near 1% decline today to near 143.00 at the moment. And you have GBP/USD rebounding strongly on the week to reclaim the 1.3000 mark currently. Even amid the negative risk rhetoric and China worries, AUD/USD is poised to erase a large chunk of last week's decline as it moves back above 0.6200 at the moment.

While the bond market is going to be the crucial spot to watch before we wrap things up this week, the dollar's demise is also something that should not be overlooked.

With the greenback falling out of favour and China also fighting back with weakening its own currency in this trade war, gold remains the ultimate beneficiary in the meantime.

The precious metal is up over 1% again today as it surges above $3,200 to a fresh record high. That brief dip back under $3,000 has proven to be quite the bargain.