Gold prices were stuck at about 1600 for a few months. On 5/16/12, gold was at 1548, and then things seemed to almost stabilize: 6/1/12 - 1606; 7/2/12 - 1592; 8/1/12 - 1599. But suddenly on 8/21, gold prices started to climb, first to 1639, then to 1660, then to 1691 on 9/3; and now to 1728.
Meanwhile, EURUSD has jumped to 1.28 and further gains are expected. It was at 1.22 on 8/1.
So what does this mean? The dollar has devalued 7.5% against gold and about 5% against the euro since 8/1. The only thing I can think of it that the market expects QE3 to happen very soon.
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