Gold Doesn't Fear a Fed Rate-Hike Pause

Meanwhile, it seems that Iran's launch of the bourse has been delayed until April, according to Platt's Commodity News.

According to John Lonski, chief economist at Moody's and a veteran Fed watcher, the Fed is not trying to hide something. "M3 is less relevant now than it was in the 1970s, given thin evidence that monetary growth is correlated to inflation nowadays," he says.

Disinflationary pressures from cheap labor and production in Asia have contributed to making M3 less relevant, Lonski adds. However, it may become relevant again in a few years' time once Asian economies mature.

Moreover, as long as most market participants believe there's no inflation, then there's little to worry about, as prices don't get out of hand. "Perceptions matter a great deal," Lonski says.

But gold bugs, who believe that the U.S. economic imbalances such as the swelling current account deficit are not reflected in the current value of the dollar, will continue to believe in the precious metal's upside.