That is exactly my thesis, the POG reflects the ebbs and flows of the dollar, not the fundamental demand and supply equations in gold that have been negative for a decade or so, with supply rising and demand declining. The perma bulls on gold expect a repricing so that gold can once more serve as backing to world currencies, and my thesis on that subject has been clear, since Breton Woods, the CB have decided (rightfully, in my opinion) that a modern growing world economy cannot be tied to a commodity that has an extraction rate that is not keeping up with world economic growth. If it was, the world would be damned to either a perpetual inflation or a depression neither are "desired" outcomes.