Gold and the $USD

Well GLD is making a new all time high for the symbol right now and this would seem to make perfect sense. Common sense would suggest that the dollar is ready to go through another round of severe debasing as the government spends it's way into oblivion, however, there's the problem of the chart I posted last night of the USD Index, which happens to be forming a large Descending Wedge. Price has even broken free of the pattern and it is a bullish pattern, so why is the dollar index behaving the way it is and if it does fulfill the bullish implications of its current price pattern, what does that mean for Gold, Oil and other related commodities? Obviously the change in the tone of the overall market (turning more bearish as multiple indicies break support) is driving a flight to safety from equities and into gold, but.... we still have this large lingering pattern that has not found resolution and it could represent a major influence on the price of gold.

While we've initiated the start of our proving period for our trading system, we have not, as of yet, taken any positions in Gold, Oil or a few other commodities that I thought we'd have large positions in. There are other opportunities out there and we are involved in those, but until there is some clarity on this wedge, caution is the word of the month with regard to anything dollar related. After all, isn't it the market's job to make as many people as possible "wrong" on their positions on any given day? See last night's post for the $USD and