| Gold bugs are wary of a strong dollar, and with good reason. In the early 1980s, gold fell 60 per cent from a peak of $850 as the US currency strengthened. By contrast, in 2001 gold started its long march upwards just as the dollar started to weaken.
As the US dollar surges again, the market is wondering how far gold has to fall. The strong dollar has already capped a rally in January, which was spurred by uncertainty over Greek elections and European quantitative easing. Gold is down 39 per cent since August 2011 as the trade-weighted dollar index has risen 36 per cent...............................................Full Article: Source
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