Because the European Hoi polloi cant get their money out of euros fast enough, they are buy US treasuries hand over fist, the 10-year is at 1.87%, and the dollar is up versus the Euro. Because gold is denominated in dollars it is down also, however temporarily, and you should buy the dips. How ironic that the US was the first to debase its currency yet is is still perceived as a safe haven. The way this is playing is almost funny but also scary. Its definitely a house of cards. The Chinese are buying gold and they currently sell renmimbi backed bonds that can be converted to gold. Its no secret they want to displace the dollar as the worlds reserve currency, and the way to do it is to back their currency with gold, all you dumb gold short numnuts.