By Melissa Pistilli—Exclusive to Gold Investing NewsA strengthening dollar has pummeled gold down nearly $40 since last week's Friday with help from an ailing euro, interest rate hikes out of India and those price-dropping accelerators, sell stops. "The strength in the dollar is weighing on commodities across the board," said Dave Meger, Vision Financial Markets metals trading director. Once heralded as a safe place to store your wealth in uncertain times, gold has become chained to the dollar and now reacts much the same way as other risk-asset commodities: A trend that adds weight to the theories of price manipulation and suppression in the heads of many a Gold-Bug GATA follower. Will gold ever be able to decouple from the dollar like it almost seemed to do earlier this year, or has its status as safe haven asset irrevocably shifted to the risk-asset class? Time will tell. That Damn Dollar For now, the greenback rules the gold market. As the dollar reached its highest point against the euro in nearly a year, gold slumped to a six-week low Wednesday, closing at $1087.50 an ounce in New York. "The dollar is screaming. That's what it's all about," said Leonard Kaplan, Prospector Asset Management president. Events in the currency markets continue to strongly influence gold's price direction, especially as traders move to the dollar as a safe-haven asset, once the function of gold itself. A stronger dollar makes commodities, including gold, more expensive for holders of other currencies. Now that the US dollar has taken on that role and has such a negative correlation with gold, is gold's safe-haven status no more? In a recent note, Commerzbank senior analyst Eugen Weinberg suggested that investor demand for gold as a safe haven asset is diminishing. As long as the dollar continues to strengthen, gold will have trouble maintaining the $1100 level and may, some analysts insist, be pushed back down to around $1000 an ounce. GFMS Analytics Ltd. warns gold may fall to $1030 an ounce over the next few weeks. But is the dollar's recent performance tied to actual fundamentals, or solely to the euro's woes?