Many believe that the direction of the dollar determines the direction of gold.

This article from Bloomberg, then, may be fuel that some of the gold buyers may want to consider as it says central banks are moving to the Euro and Yen

quote
ct. 12 (Bloomberg) — Central banks flush with record reserves are increasingly snubbing dollars in favor of euros and yen, further pressuring the greenback after its biggest two- quarter rout in almost two decades.

Policy makers boosted foreign currency holdings by $413 billion last quarter, the most since at least 2003, to $7.3 trillion, according to data compiled by Bloomberg. Nations reporting currency breakdowns put 63 percent of the new cash into euros and yen in April, May and June, the latest Barclays Capital data show. That’s the highest percentage in any quarter with more than an $80 billion increase.

……“The diversification out of the dollar will accelerate,” said Fabrizio Fiorini, a money manager who helps oversee $12 billion at Aletti Gestielle SGR SpA in Milan. “People are buying the euro not because they want that currency, but because they want to get rid of the dollar.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aS2s2mhDVBSM
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The risk of a less than “orderly” decline in the dollar increases with each new move to diversify out of dollars by nations. Many are not in the position of China. They don’t hold massive dollar reserves and can exit easier. But, when they do, they also increase the risk to the dollar and to the holdings of China and OPEC nations and others that hold a lot of dollars.

- JanPaul

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