Will hot gold cool again?

The golden regret must have got the better of all those investors who stayed away from the yellow metal during the time when prices reached Rs35200/ounce on January 2, 2009 from its peak Rs38,900 an ounce touched on December 2, 2008. It seems like the precious metal just stopped, took a nap and is back on track on its journey up north as the rally has started again with gold reaching Rs 36600/ounce.
Gold prices after having enjoyed relatively stable period from February to August 2009 have been fluctuating wildly as prices tend to have strong negative correlation to the dollar index. Unsurprisingly, in todays world., USA is vital in predicting fates of many a things, so gold stands no exception as US economy holds central importance in determining golds path ahead.
In this context, gold downward movement is inevitable over the middle term since all market indicators depict that dollar will likely recoup losses after a while. On the flipside, in short term, gold will rise as dollar might slide since growth; post recession is generally sluggish and choppy.
Market pointers clearly reveal that recession is almost over as shocks generated by US recession have already been felt - from housing collapse to failures of banks and high unemployment, leaving less chance of having any more aftershocks in the bank.
The very notion was also voiced by the statement of Federal Reserve Chairman Ben S. Bernanke, back in September 2008, which said that worst U.S. recession since the 1930s has probably ended. While he also warned that growth may not be strong enough to quickly reduce the unemployment rate, which signals that dollar may slide in the near term.
Besides, almost all sectors in the US economy have either reached their worst point or are just there and there about, pointing that there enough room available for economic recovery.
US economy is also expected to show improved performance down the line on the back of rise in exports to China and other Asian countries, while weak dollar will make products competitive in international market.
Finally, if Euro weakens further due to Greek woes or if recession occurs in any other European country than dollar value will ameliorate and push gold down.
Given above scenario, it seems that yellow buyers that missed the train in the previous rally, may well be presented with another chance - albeit, short term.