Its all about Management of Perceptions or MOPE. Read Jim Sinclair at www.jsmineset.com sometime. Gold has been artificially suppressed for more than 15 years to stop it from becoming an alternate currency to the US$. There are no free gold markets in gold anymore just interventions.

If the price of gold goes up and the value of the dollar goes down, then it shows the public that inflation is rampant. When the US reports 10% unemployment numbers (which are really only the people seeking employment and doesn't count the additional 10% that have given up looking) , this reflects badly on the economy and the US dollar. Gold has gone from $250/ounce in 2001 to over $1300 today. That means that all your US $ investments (Bonds, stocks, hard assets etc.) have been devalued by over 80% compared to gold. The rest of the world understands that which is why they want to replace the US $ as the reserve currency. That is why at critical junctures such as employment reports, the US gov't/gold cartel will drive down gold, silver and pm prices.

Mike