"The impact on gold is due to a loss of trust in the dollar-reliant system. Jim Grant, publisher of the Interest Rate Observer, said it best: 'The price of gold is the inverse of confidence in central banking.' If dollar strength continues relative to other currencies, for a while that's not a bad thing because competition keeps prices low in U.S. dollars. But ultimately, it's a destabilizing factor because it's bad for emerging markets that have borrowed in U.S. dollars...

It seems to be a good time [to buy gold]. Gold is already strong in every currency other than the dollar. Negative interest rates in much of the world and the overly strong dollar should eventually result in political pressure to cheapen the dollar, but against what? The only monetary asset left standing will be gold."