Dollar panic developing: Gold moves closer to record high

The world is waking up to the fact that America cannot tax and spend its way to prosperity… which pushed gold up for the third straight session this morning. People are starting to go gold crazy.

Gold tends to rise when the dollar falls. With the dollar reaching a fresh 11-month low this week, gold touched $1,006 this morning to close in on the September 11 high of $1,013.

But contrarians should consider this: Hedge funds are now massively long gold… so a natural shake out is likely.