Two things auger in the dollars favor against other currencies, but have nothing to do with gold or silver.
The world is still based in dollars.
The world copies us, therefore, has paper just as bad as we do for the same reasons-folks can't pay and
they bought our bad paper.
They've abandoned lowering interest rates to inject liquidity into the economy, so they're making the same mistake we did during th Depression, and everyone is aware of that.
So fiat to fiat, dollars are winning.
Leadership in the US is on a powertrip, appearing to manipulate vast economic forces with decisive action that, gasp! means Congress can't take their traditional holiday off--gee--we must be serious, when the going gets tuff, the tuff stay put and do a bailout.
Now that all paper is being compared to each other, everyone has conveniently forgotten, all the paper is being inflated against specie to do all of the above. Meddling with economic forces appears to be strength, but in relation to specie, it's like hitting the enemy in the fist with your face. Nobody gets it yet.
HOWEVER, auguring on the supply side, poorer nations, like India, have dropped gold like its hot at $950 an ounce, to the tune of importing 36%, or 36 Tones, LESS that previous month.
That demand "deduction" has spiraled gold back $100, so we'll have to see how much that affects demand positively,
Basically its saying that instituions all over the world went to bookies and said "let me make bets with large amounts of US dollar that I don't have, if the bets go against me, I'll get these dollars and pay you back".
The bet has gone against the institutions. Their bet is loosing big time in US dollar amounts. Now the institutions need to go get US dollars in the market to pay off the bookies. All these institutions trying to get dollars at the same time is creating a huge demand drain on dollars pushing it up.
At some point, legs will be broken and fingers chopped off for bad bets and then business will resume but in what shape and form we don't know.