So what it's true? A Chinese official trashed our currency, so the dollar is down and gold reaches another high.

"The continuous depreciation in the dollar, and the U.S. government's indication that, in order to resume growth and maintain public confidence, it basically won't raise interest rates for the coming 12 to 18 months, has led to massive dollar arbitrage speculation," Liu Mingkang, chairman of the China Banking Regulatory Commission, said Sunday in Beijing at the International Finance Forum, according to news reports.

Meanwhile Gold is at another high:

This is a different type of gold rally, with support coming from both sides of the market -- investment [and] fundamental," said Darin Newsom, a senior analyst at Telvent DTN.

The latest gains for the precious metal came on the heels of further weakness in the U.S. dollar, with greenback buying 89.56 Japanese yen, down from 89.72 yen late Friday in New York.

But don't think Gold is completely inversely related to the dollar. It seems there is safe haven buying going on.

The Aden Forecast suggests that gold could reach $1,200 on this move, and that the gold bull market could continue for seven to eight years.

While this post says a falling dollar is nothing to fear and helps our trade deficit. I beg to differ and can sum it up in one word, oil.