The battle between inflation and deflation does not occur in a straight line. Stimulus and bailouts continue until it is no longer politically expedient to continue.

I believe we are approaching the time where stimulus is out of vogue (passed it) and this is negative for gold. Don't worry though, as it is only temporary. The taste of deflation that was experienced last year will be more repulsive this time around and will provide the central banks with a crisis (read: opportunity) that will empower them to fight the deflationary dragon with more tools and money than ever thought possible.

In addition, one must remember that the USDX is a basket. The Yen, EUR and GBP are the largest currencies in that basket. ALL are under SERIOUS pressure, and as they are the denominator, the numerator will rise.

Stay thirsty my friends, flow with it, don't fight it.

"The general who advances without coveting fame and retreats without fearing disgrace, whose only thought is to protect his country and do good service for his sovereign, is the jewel of the kingdom."