Megan McArdle sees a nasty bubble in gold prices. The key paragraph:
It's not that quantitative easing may not cause inflation--it might. In fact, that's sort of the point; the Fed wants a little more inflation in the money supply, in order to ease the unemployment rate. But consider how much inflation there would have to be for this gold price to make sense. Even assuming that something like the July 06 price of $550 is a more natural price, the price of gold is now almost triple that. Are we going to get 10% inflation a year for a decade or so out of this quantitative easing? Not really very likely. Especially since what the Fed giveth, the Fed can take away--if inflation spikes that high, Uncle Ben will convert to an inflation hawk.