US Dollar Is the 'Last Domino Standing'

The Dollar Index, which measures the greenback against six major currencies, gained 2 percent from Tuesday's low through Friday.

"In many ways, the dollar is like the last domino standing," Merk said. "Remember, in 2008, there was a flight to the dollar as well. But the other asset class that did well was Treasurys. Well this time around, there is no hiding in Treasurys."

The yield on the 10-year Treasury note rose from 2.54 percent Friday to 2.59 percent Monday, the highest level in almost two years.

"Some people are saying the dollar's going to be doing great: we have all of this tightening happening at the Fed and what not," he noted. "Well, guess what? We just think that is the last bubble out there."

Read More: www.moneynews.com/InvestingAnalysis/Axel-Merk-dollar-gold-safe-haven/2013/06/24/id/511559