these two continue to amaze me. why is the dollar so strong and gold so weak? four weeks ago i expected the greenback to go well above 1.60 to the euro and gold to leave 1.000 behind. one bloomberg headline was quite weird: "gold drops below 700 as investors flee to cash" it turned out that they meant that investors were forced to liquidate gold to cover equity losses. still little weird to me, but least not as weird as a flight from gold into cash. illustrates pretty well how confused everybody seems to be. what puzzles me is that usually, when the US is in trouble, the dollar falls and helps them. and the fundamentals for gold are fine, plus the crisis should provide technical momentum.