John Rubino* explains some 2014 developments & relationships which caused gold not to outperform & to delay the bullish case for gold .. when the world borrows in U.S.$s, you create future demand for the dollar because in order to pay off the loan you have to acquire more of that currency, so that demand for dollars rises even as U.S. debt increases - "In the short run, this makes the dollar stronger despite America’s deteriorating balance sheet. Add in the fact that the rest of the world is in even worse shape than we are, which makes the U.S. look like a safe haven in relative terms, and the result is a strong dollar even in the face of soaring U.S. liabilities." .. also the world's governments & central banks have been able to use trillions of dollars of newly created currency to force down interest rates across the yield curve & to push up equity prices - "This signals to market participants that 1) things are basically okay, so relax, 2) it’s actually prudent to go for growth and yield by buying equities, junk bonds and houses, 3) it’s reasonable to borrow for things like college and cars because there will always be plenty of money, one way or another, to cover those debts, and 4) betting against the status quo will be punished. Short sellers and savers will lose because equities will be secretly supported, competing forms of money like precious metals will be depressed, and cash will yield next to nothing." .. emphasizes these trends are unsustainable - "This will blow up. And when it does, the world’s central banks will respond with debt monetization on a scale that will dwarf QE3 and Abenomics. 'Inflate or die' will become official global policy. And gold will behave as it always does in such situations, by going parabolic."

http://dollarcollapse.com/the-economy/2014-in-review-how-could-gold-bugs-have-been-so-wrong/