What's happening to the price of gold?

The gold price looked set to rise and rise this year but instead fell back a fair back in late January to around $1320 per oz and even now is trading below $1370 per oz.

Why is this? Am I wrong in seeing high inflation in much of the world as being a driver of the gold price up? Love Money have an opposite point of view that deserves reading, here's one point:

'Gold loses to inflation
Some people say gold is a currency. The debate between economists on this issue is heated and more complicated than most people realise. I'm not bothered how you classify gold, but it has at least one similarity with currency: it has lost to inflation most of the time. This is ironic, because most people buy gold to protect themselves from inflation.'

Confused? if so then Harvey Organ's blog will probably not help, here's an extract from an article on the price of silver and gold:

'silver in complete backwardation.

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I

Saturday afternoon,  this article, Near Zero Contango in Comex Silver Futures, came to my attention in which the author noted that silver was in zero contango throughout all silver contracts.  I have verified that this is correct.  This means that silver is in very short supply at the spot price as investors are not willing to sell their metal at spot and buy a futures contract for fear that they will not get the physical metal.  This is the first time this has ever happened in silver.  The bankers have tried to bid up the prices on silver at the further out months at the comex, trying to keep the facade that silver is in proper contango and ample supplies of silver are with us.   This is not true as we now know that silver is in short supply as I have indicated to you on many occasions.  Adrian Douglas has also presented another paper on silver today.  For seven years, gold and silver have traded in perfect uniformity.  If gold goes up by 1% then silver will rise somewhere around 1%.  Douglas has now concluded that the shackles have been removed and silver is now on its own.  Douglas also noted that silver is basically in complete backwardation or no contango.'

Help!