The key is currency printing by several nations.

The dollar is just one of many currencies being devalued as nations try to stay ahead of each other for exports. Each nation believes it has to lower the value of their currency to help exports be cheaper. Whether you think that is wise thinking or not, they are doing it.

Even when the dollar goes up in price to the basket of currencies it is tracked against, it may be going down in value and thus, gold will rise to all the currencies falling in value.

If you see the dollar and gold both going up, look first at the other currencies in the basket. Are they also seeing higher gold prices? If so, gold is not as risky as many might think. If, however, you see gold falling in price in the other currencies, while the dollar goes up and gold goes up, take that as a warning sign.

Central banks buying gold may be more of a driving force than before. Their buying, though not as frequent, drives the other buyers who think that central bank buying is a warning that currencies are going to keep falling.

- JanPaul

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