The price of gold is related to the strength of the dollar. When the government inflates the money supply, the value of every dollar decreases compared to the relatively stable supply of gold. The decreasing value of the dollar means less purchasing power. In other words, it takes more money to buy things than it used to (i.e., prices rise).
With this in mind, did you hear that the price of gold hit record highs this week? Take a look at the price of gold over the last 20 years.