The USD problem with a gold recovery

All the gold investors have been hoping that people will come to their senses and see the coming economic downturn as a result of the rising interest rates and start buying gold. But this has not been happening, has it. Right now gold is interacting pretty directly with USD and the problem here is that USD is slated to get stronger this year. And this can only be bad news for gold. We are both increasing demand for USD by expanding the deficit and selling more bonds and we are decreasing supply be increasing interest rates. We are also seeing good GDP growth and other positive metrics for the US economy which help support USD as well. Positive consumer sentiment is typically bad for the safe haven metal. There also doesn't seem to be much paranoia about the Fed letting inflation run away on us, in fact that Fed seems intent on tightening the monetary supply with out the requirement of inflation running above 2%. So inflation concerns aren't driving gold either.

So Golds problem is: nothing is going wrong, there's no inflation fears and no economic apocalypse unfolding and the USD is wrenching around Gold at will. Once the yield curve inverts and dries up liquidity and companies have troubling rolling over their massive debt load and start laying people off; then I think you'll see gold roar to life. Not to mention the fact that the Fed has recently expanded the monetary supply by roughly 3 times, did someone say stagflation? and if we're really luck! maybe North Korea will start shooting of ICBMs all over the place :) :)