and in turn drives gold higher.

omg I even understand this but it does not make any sense.   So there is optimism that this fiscal cliff thing is going to get resolved, so you would thingk that would strengthen the US dollar and drive down gold which trades inversely to the POG.  But because the US dollar is a safehaven (apparently a safe haven from the fiscal cliff which I thought was located in the US) so good news on the fiscal cliff is bad news for the US dollar, which is good news for POG.  Whatever, I will take it anyway I can get it.