I agree completely that whatever weakens the dollar will largely benefit the price of gold, but that isn't the same as saying Gold is going to keep going up.
You have to realize that it is precisely this information that is already priced in. People's fears and expectations are what set stock price values. The # they trade at, whether its gold futures, oil, Coca Cola stock, or whatever, represents the "average" of all the data points that people in the market are trading at. If every trader agreed with me that gold was overvalued, then there'd be no upside, the current price of gold would already reflect that.
I'm not anti-precious metals at all; in fact I made decent money this year already betting on them to Rise. But now, so much fear and uncertainty is already priced in at that $159 GLD value, that IMHO it has gone up too far, and people will leave it for other investments on the expectation that the debt crisis will be "resolved', at least in the short term. I don't hate gold as an overall investment at all, I actually own some physical gold and silver, I just hate it at it's current high valuation, so I'm betting on it falling to a more reasonable valuation as soon as the market "thinks" the debt ceiling risks are reduced.
