Gold prices were falling for a second day on Wednesday as skepticism swirled around the precious metal’s role as a hedge against the dollar in one of 2025’s most popular trades.

That strategy, known as the

debasement trade, is premised on the view that the U.S. dollar’s value is poised to deteriorate, prompting investors to rely on gold as an alternative asset. For now, though, the thinking behind the debasement trade is failing to hold up, according to Marc Chandler, chief market strategist and managing director at Bannockburn Capital Markets. By almost every metric, the dollar remains overvalued relative to other currencies, he said.