Gold is just consolidating here. Needs to shake out the weaker/spec holders. A weaker $ is definitely gold supportive and when Ben cranks up the printing press in response to the fiscal cliff, gold will go parabolic. With US, Europe and Asia all trying to print/inflate their way out of trouble, gold is only store of value left.
A sliding dollar is of no help to sensitive commodities, all tumbling in early trade. GLD -1.4%, SLV -2.2%, USO -1.2% premarket. [View news story]