The price of gold in hard times

In these uncertain financial times, I’d expect the price of gold to be sky high. But after reaching a peak of around $1000/ounce early in the year, it’s been generally downhill, now even dipping below $700. What’s pulling gold down?

Part of the drop can be attibuted to a general drop in commodity prices. Part of the drop is due to the recent rise of the dollar relative to other currencies. When the dollar gets stronger, it buys more gold for less dollars. Therefore, you think gold is going down.

Less demand for jewelry.