Abe has fueled speculation that more monetary easing may be on tap if his party is successful in the elections.

FORBES: FOCUS: Base Metals May Rise Going Into Year's End

The real reason for the plunge in the gold is speculation that International Monetary Fund (IMF) will be selling gold.

FORBES: Blame The IMF For The Big Drop In Gold

Some support came from speculation about further monetary easing by the Bank of Japan, said Howard Wen, commodities research associate with HSBC.

FORBES: Comex Gold Rebounds On Easing Prospects, Indian Demand, Technical Factors

This is also a sign that current market strength is based upon pure speculation based upon a foolish monetary policy.

FORBES: Stocks Are Overbought And Becoming Overvalued

Speculation among traders and investors about further Fed easing of monetary policy is a mildly bullish development for the precious metals.

FORBES: Comex Gold Soars to Another New Record-High on Continued Strong Safe-Haven Investment Demand

The rise in the price of gold is being caused by commodity speculation and is a message to the Federal Reserve that monetary policy is on the wrong track.

FORBES: Gold, Oil, Banks And Eight Other Themes For 2011

This led to speculation of a third round of quantitative easing of U.S. monetary policy.

FORBES: P.M. Kitco Metals Roundup:Comex Gold Ends With Solid Gains on "Bernanke Boost;" Bulls Regain Some Technical Momentum

Rising weekly jobless claims and a tepid gross domestic product estimate for the second quarter added to a recent string of weak U.S. economic data that is making for increasing speculation the Federal Reserve may opt for another round of quantitative easing of U.S. monetary policy.

FORBES: By Jim Wycoff Of Kitco News