Propped up by the asset/credit bubble...if asset prices drop suddenly so will gold....as will all commodities.
A sudden spike in YOY headline inflation will way lay the FED at the next FOMC meeting. Look for that tomorrow. Today they drained when the FED FUNDS rate was trading above 4.75. I think they told the treasury (a.k.a Goldman Sachs) the subprime is yours to fix and they gave them a helping hand. But now, their credibility is at risk.
They can't afford to ignore the falling dollar and rising commodity prices much longer.
They need to act, and they might increase rates next meeting.
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