Skeleg,

No, this issue is not that much off topic, since we all understand that gold prices are largely dependent on the strength of the US dollar.

One significant threat,of many, to the US dollar is the abandonmet of the dollar by other countries, especially oil producing ones.

Didn't Iraq only accept Euros for its oil sales just prior to the last US invasion? Isn't Iran doing the same now?

Isn't this one of the major reasons why the US may soon attack Iran? It's not Iran's development of nuclear weapons that the US gov't is worried about. It's the US dollar that must be preserved as the world's reserve currency, perhaps at any cost.

So, consider this possibility, gold will do better if Iran is not attacked, since Iran's role in the dollar's decline would not be significantly challenged by the US.

Sure, in a US Iran attack, oil and gold would spike temporarliy, but the dollar's strength could very well do the same. And, if that should happen, the preservation of US dollar strength just may reverse gold's gain following an invasion.

Sunday morning coffee made me write this.

Go Tyhee!

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