Dollar indexU.S. Dollar Currency IndexTVC:DXYShavyfxhubDollar index on hawkish fed belt ,the weekly candle close will definitely stay above 100.8, Dollar index bullish trajectory remains attractive and bulls will keep buying dollar and sell GOLD into discount based on market structure. What is DXY? DXY is the US Dollar Index and it measures the value of the US dollar (USD) against a weighted basket of six major foreign currencies, primarily the euro (about 57.6% weight), plus the Japanese yen, British pound, Canadian dollar, Swedish krona, and Swiss franc.  The dollar index Base value is Set at 100 in 1973. When DXY rises, the USD is strengthening against the basket (stronger dollar). When it falls, the USD is weakening.  The Dxy is a key benchmark for USD strength in forex, commodities, and global markets. DXY Relationship with US10Y (10-Year US Treasury Yield) US10Y refers to the yield on the 10-year US Treasury note, a benchmark for longer-term interest rates and overall US economic/financial conditions. The General relationship is a Positive correlation.A Higher US10Y yields often support a stronger DXY (and vice versa). Higher yields attract foreign capital seeking better returns on USD-denominated assets (like Treasuries), increasing demand for USD.  The bond Mechanism,when bond Yields rise bond prices fall (e.g., due to inflation expectations, strong growth, or hawkish Fed policy). This makes the USD more attractive. The correlation isn’t perfect and can decouple at times (e.g., due to risk aversion, policy divergences, or other factors like Treasury General Account flows). Recent periods have shown breakdowns where yields and DXY move independently.  Every forex traders should have a chart to watch both together: Rising yields + rising DXY often signals USD strength. How DXY and US10Y Affect Gold (XAUUSD) Price Action Gold and the USD have a strong negative (inverse) correlation historically.  When the DXY is high (stronger USD) → Lower gold prices: Gold is priced in USD globally that’s why you have (XAUUSD). A stronger dollar makes gold more expensive for buyers using other currencies, reducing demand. Gold and USD often act as competing “safe havens” or reserves. A strong USD reduces the need for gold as a hedge.  When DXY is low (weaker USD) → Higher gold prices: US10Y influence on gold: • Higher yields increase the opportunity cost of holding non-yielding gold (you could earn interest on bonds instead) → tends to pressure gold lower. • Lower yields (e.g., rate cuts) make gold more attractive → supports gold prices. • Combined with DXY: Strong USD + rising yields is typically very bearish for gold. Weak USD + falling yields is bullish for GOLD ALTHOUGH Correlations can weaken during crises (e.g., both gold and USD can rise as safe havens) or due to central bank buying, geopolitics, How DXY Affects EURUSD Price Action EURUSD (euro vs. US dollar) has a strong inverse relationship with DXY because the euro has the largest weight in the DXY basket.  • Rising DXY (stronger USD) → Falling EURUSD (USD buys more euros). • Falling DXY (weaker USD) → Rising EURUSD. This is one of the most reliable short-term relationships in forex. Movements in EURUSD often drive much of the DXY action, and vice versa. US10Y indirectly affects it via USD strength: Higher yields support USD → pressures EURUSD lower. #dxy