Dollar Falls as Gold Hits New High – WSJ Blog

I don't see the rise in gold as tightly linked to the dollar.  Gold on the longer term charts is rising against most currencies.   I believe there is growing awakening that gold and silver have been and really never stopped being monetary precious metals.  Unlike paper or fiat currency, there is a limited amount of the stuff.  I heard it said that all the available gold ever mined would fit in an two Olympic size swimming pools and the silver market is tiny compared to gold.

Gold is at about half its inflation adjusted high and silver at about 1/6th of its inflation adjusted high.   Why are these the only two commodities that have not retouched their inflation adjusted highs?  In my opinion its because following the "leadership" of the US, after Nixon defaulted, strike that, removed the US completely from the Gold standard of money, the long term price suppression scheme went into place and central banks for many years became one of the largest suppliers of gold to the market.

As global awareness of the risk and weakness of a monetary system in which unlimited amounts of new currency can be created and corresponding debt is also created even central banks are beginning to realize that gold and silver have not stopped being money and are on net moving to the demand side of the ledger as they become net buyers of gold.  

While the games are played to short the paper gold and silver markets to keep the excitement from growing, there are magnets at $1650 and up to $7,500 for gold and silver has light years to go.   

When will the most insightful works of the Gold Anti Trust Action Committee (GATA) become front page?   I know that GATA placed a full page color ad in the journal not so long ago but I hardly ever see Bill Murphy or any GATA spokes people in the mainstream.   The knowledge they have is probably the most accurate and under reported of all.

Dollar Falls as Gold Hits New High – WSJ Blog

"A new record high in the price of gold and fresh speculation of an increase in Australian interest next week are pushing the dollar lower, with the euro making another attempt to break over $1.50.

Spot gold touched a fresh record high of $1180.10 per troy ounce and, at 0730 GMT, was trading at $1177.85, up $7.55 from the New York close. “In the runup to Thanksgiving it would appear the desire to lock in profit is still not greater than that to accumulate new long positions,” said Barclays Capital in a research note.

The dollar also fell to a seven-week low against the Japanese yen. As Asian and European stocks rally, the dollar fell to 88.17 yen and the euro rose to $1.5016. The pound is up at $1.6722, helped by comments from BOE’s Mervyn King about the substantial amount of monetary tightening the bank will eventually have to make."

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