I tend to go your way about future POG valuation by the market , as the price of gold continues to climb sooner or later the market will have to readjust .

The incertitude regarding major fiat currencies will not go away soon and eventualy , though that´s further on the horizon , interest rates will have to go the only way they can go , up of course , then inflation should follow , even though that remains to be seen depending on wether or not its accompanied by growth .

Some incertitude remains obviously , or else the POG future valuation attributed to miners would follow closely the actual POG .

On the eve of the G20 meaning China announced it´s intention to revaluate the yuan ( some interesting articles were publishet on Reuter´s this week end ) , i think , and i must admit i´m far from sure about what i´m going to say , but i think this might deflate the value of the dollar against other major currencies , wich in turn should bring commodity prices higher , oil among other things .

If that were to happen i think the increase in cost for gold miners might be inferior to the gain brought about by higher gold prices once the POG future valuation by the market comes to term with the reality .

One of the reason for the dollar to go down has to do with treasuries and the perception one might have about the success of future US treasury bond sales , some of wich will be sold this week for about $108 B. and the impact it might have on the US economy if problems start to appear with US bonds sales . If this were to happen interest rate might start to rise sooner then expected .

It´s hard to foretell how the yuan revaluation will impact the US economy as well as the world economy , China is the first holder of US bond as we know and they can´t let their major investments down , but will this change a year or two from now who knows .

Roubini stated in one of those articles that he believes due to the interconnection between the yuan the euro and the US dollar that the fluctution of the yuan will go the opposite way and deflate against the dollar considering the euro has been down sharply over the last year or so and the fact that the euro along with the US dollar , and maybe the B pound and the yen are the only reserve currencies held by most .

If the dollar were to go up , then the scenario i pointed concerning commodity prices is wrong but i still don´t see how gold prices would go down considering incertitude .

IMO the yuan´s future´s key resides in the basket of currencies against wich the yuan will fluctuate and in what proportion . One must also consider how long will China accept to let it´s currency fluctuate if it comes to hurt China´s economy .

The euro´s descent from around $1.60 vs 1E to about $1.20 as improved the balance of trade between China and the euro zone , the US is hoping for the same in order to improve US export and employment . Other countries welcome the change as well , Brasil among others said it welcomes the change hoping to get a better price for it´s export , oil being an important one of course .

The rest of the world hope that such a measure will spur china´s consumer spending wich in turn could also increase pressure on price commodities as it brings about a new age of world economy growth .

All this being said i still think the rise of the yuan should be seen positively concerning commodity commodity and gold prices as for the impact on world economy´s growth i remain puzzle as to how that will unfold .