Gold moving again

But this time it is moving down.   Let's look at some charts and see what's going on here.





The dollar hasn't moved much, so that's not what is causing this move.




You have a downward move here, but it isn't all that big.  About 1.5 %.




The commodity index is about 2.5% down.  That is a little less than gold at this juncture.




About 3.5% on the gold index.

What's up with all this?  China is making some noises about tightening up monetary policy?  How does that affect policy over here?  Has the Fed changed its QE2 plans?  If China goes with the tightening, does the Fed follow?  If the Fed doesn't follow China, what then?  A weaker dollar, I would think.  This is what the administration wants.  So why all the consternation?  The stock markets should be pleased.  But that's not the case today.  This hasn't changed my opinion.  Unless the Fed changes policy, we still have an inflation scenario.  But this might cool down the commodities a bit.  China is driving that up.  If China slows down, commodity prices could fall, or at least slow down their upwards move.  But that doesn't account for a weaker dollar.   Obama could be looking for a weaker dollar to help exports.  In short, nothing has fundamentally changed in my opinion.

NOTE: these charts may change tomorrow even if they are posted here.  As of this post, the charts look like that now.  Tomorrow, these charts could look different.  These are not screen shots but java created charts in real time.  As of this moment, it is 1:20pm central time, 11/12/2010.