That`s 1 of China strategy.
U.S keep asking China to revalue the RMB, but so far, it fall on deaf ears.
It shows that how powerful China is.
China is so powerful that U.S dont even dare to take on North Korea.

could drop somemore.... just curious.. why gold is dropping ?? shouldn't it be higher since got disaster and all and ppl parking their money in gold ?

There are two problems that are contributing to the USD pitfall: Stupidity and more stupidity, which ironically, rest within the brains of MIT and Harvard alumni Ben Bernanke and Obama.

It wasn't since 2008 after the financial crisis that the USD started falling. It was wayyyy earlier than before that the USD was already devaluing.

Way earlier back in 1971 when America decided to put their dumbest president in office just to see what happens. Richard Nixon told the nation the Gold Standard was bad for the economy, and decided to take USD out from the Bretton Wood Agreement. He even went on and told the world's central banks to empty their gold inventories and replace them with worthless US$. This is why the US$ is the world's largest reserve currency until today, and China is making noise for a new reserve currency.

The series of war between America and Soviet and the Iranian Revolution followed on. War cost money, and America didn't have the money to pay. So what's the solution? Print more money! And then put circulate them in the public! This massive QE programme led to the unprecedented gold spike of US$850 an ounce in 1980, which is equivalent to US$2,000 if measured in 2006. The massive monetary inflation had brought the country to its knees and America was on the verge of a social collapse.

To tackle the problem, Henry Paulson, then treasury secretary, was forced to raise the interest rates to 20%, and it did what it was meant to do. Gold price dropped, US$ rose and the inflation controlled. Gold continued to drop until 1999 when the value was US$250 an ounce.

And then the Internet Bubble in 2001, America was experiencing another economic crisis. Alan Greenspan then chairman of the Federal Reserves reduced the interest rate from 7% to 1% in an effort to encourage spending in the economy. This was the cause for the housing bubble that led to the financial crisis 2008.

And pouring more fuel into the fire, America put another dumb president in power. Obama raised the debt ceiling, proposed his healthcare reforms(more government spending) and forced the Congress to approve his massive stimulus package to bailout companies. This ballooned the already exploding national debt of US$14 trillion (which is higher than the world's GDP combined  ) and America is trying to pay back all its debts by QE2.

Investors now know 2 things :- low interest rates will no doubt create another bubble and QE2 helps nothing but devalue the US$. If interest rates does not rise, QE2 not stopped and the national debt not controlled, investors will stay away from the US$ and you will continue to see the gold price skyrocketing (in USD).

EDIT: Those who do not know history are bound to repeat history. If you have the time, google Depression of 1920-1921 which was worse than 1929 and look how the government solved the crisis in just 18 months.

Also, google the German Weimar Republic 1923 and their government bankrupted the country. Whatever their government did back then, is exactly what the Obama administration is doing right now.