My take on all of this:

It appears that everything else in the world is in even worse shape and the only current "safe haven" is the dollar.

Gold is getting sold by hedgies that are de-leveraging and probably by central banks to get cash to inject into their financial systems.

In the end, the massive increases in money supplies will create significant inflation, which will ultimately drive the price of gold to very high levels.

The only "evidence" I have for this idea is that the yen is also strong as the carry trade unwinds and all of the assets bought with yen loans, like gold/basic metals/oil/stocks, are getting pummeled.