[bert]

Cities don’t trade gold people trade gold. They bought it here and sold it there. it is arbitrage and old as time

[Aevery_Freeman]

Your snide quip does not address the question. If they are buying in USD, they must have USD which they have to buy from they issuing country so a currency exchange is involved. If they are buying in their own currency, a currency exchange is involved.

The imbalance in the commodity price is temporary and self-correcting thereby stabilizing the currency.