Gold shot higher in the first half of Tuesday's European session, breaking above $669 for the second time in two days as New York opened for business.
"We're seeing some real weakness in the Dollar, and that makes me very bullish on gold," said one US commodity broker in Chicago to Bloomberg earlier.
"I'm looking for gold to catapult to $700 within three months."
Futures prices for gold have also shot higher. Just ahead of 09:00am New York time, April contracts had risen $5.70 at the Comex – some 0.9% – to $673 per ounce.
"While US Dollar weakness has not been a driver of gold during the recovery in the past month, any sell-off in the green back would likely be a trigger to take gold higher," reckons John Reade, head of metals strategy at UBS in London.
Yet even as the Dollar has fallen against the Euro today, with the cross now trading at $1.304 for the first time in a week, the gold price has risen to hold €512 per ounce for French, German, Italian and Spanish buyers.
And today's biggest move in the currency markets, meantime, has come versus Sterling.
This morning's apparently "weak" UK inflation data – in fact holding at a 16-year high – has led forex traders to sell the Pound in anticipation of "no change" from the Bank of England when it next meets in March.
Sterling dropped from €1.504 to €1.492 on the news. Against gold, the Pound has sunk to touch fresh 7-month lows beneath 1/344th of an ounce.
Gold's bull run in fact – now uninterrupted since Jan. 4 for Dollar investors – remains intact against all major currencies.
Against the Canadian Dollar, gold is now trading at its highest level since mid-May, back when de-hedging by the world's leading gold miners – plus heavy jewelry demand from India – drove prices to a 26-year high against all major currencies.
Versus the Australian Dollar, gold has reached its highest level since June 16, trading above A$863 per ounce earlier today
And against the Japanese Yen, gold overnight in Asia touched a fresh 23-year high at more than ¥81,500 per ounce.
Indeed, gold's strength against all paper currencies has now become so clear to see, even the mainstream newswires have spotted it!
"Gold was also rising in other currencies," reports Reuters after noting this morning's Dollar action, "usually seen as a bullish sign."
Rising gold prices are bullish for gold? No, you don't say...
"Gold in Japanese Yen and Euro terms is leading/confirming the onset of potentially more substantial upside," says a technical analyst at Barclays Capital in London in a note today.
Why can't he see that gold has been rising against ALL major currencies for more than 3 years now? What is it about institutional investors that forces them to see gold as a purely Dollar-dependent asset?
For more serious analysis of the gold market today – plus the 2007 outlook for gold mining supply – click here now and read on...