Risk has returned to global markets as participants grasp that the central banks' quantitative easing and massive stimulus have failed to reset the clock to 2006.

Right now there is a forecast for every possible market move. The dollar is about to turn down and gold is about to race higher; or, gold is about to fall to $700/ounce. The global markets are about to embark on a crushing Wave 3 decline to new lows, or the lows of 2009 will not be revisited in our lifetime.

And so on. Nobody knows what's going to happen. If it were easy to predict the market's gyrations, we'd all be millionaires.

The U.S. dollar was up last week against the euro out of fear of how debt problems in Greece and elsewhere in Europe will be resolved, and as a result gold had a tough week.

The dollar’s rally appears to be a short-term safe haven move, rather than a response to improving economic conditions in the U.S.

It's frequently argued that gold is a great hedge against calamity (though not the likes of which we saw last Thursday, obviously) but not actually a great inflation hedge, which is how its frequently advertised.

Jason Ruspini begs to differ, pointing out that most critics of gold tend to use the elevated (and arbitrary) 1980 peak.