Im of the opinion that the strong USD and deflationary fears are setting back gold prices at the moment. But look no further than the Bank of England cutting rates 1.5% (thats 150 basis points!) today which proves this point exactly. However, its only a matter of time before the overburdened balance sheets of the G7 lead to mega high inetrest rates, as they are unable to attractive treasury auction buyers unless they are compensated for risk. The high interest rate environment will eventually stoke gold prices much higher like in did in the early 80's. All this doesn't even consider the deteriorating supply/demand imbalance gold is facing.

The perfect storm for high gold prices is brewing. The ramp up in early summer was only the beginning. Boy, what a shake out all the way below $700/oz it was though!