Gold intermarket: DXY or inflation to measure gold's outlook?

Gold has been a flat sideways tight chop as markets start to settle back after extreme volatility with a Trump victory that initially has the yellow metal bid on uncertainty.

Further uncertainty could make a case for bullish gold again, just as a parking spot, although it is questionable whether Gold is a hedge against inflation considering any time except for the the 1970's gold has not correlated with it. However, gold most certainly has correlated to the value of the greenback, for when the DXY is strong, the yellow metal tends to move in the opposite direction, and that is what we have been seeing, a direct negative correlation for the past number of years. US Dollar turns positive above 100.00

Currently, the market expects a higher dollar on prospects of inflation due to Trump's plans for fiscal stimulus, but it does beg the question of how tax cuts and government spending is going to be funded - monetary stimulus perhaps?

The debt still exists that was built up under Bush and Obama within a bond bubble that has inflated over decades of bad policy and budget deficits. Massive inflation is not good for the dollar, as the currency loses its purchasing power and subsequently, that is possibly bullish for gold if history of correlations is anything to go by? Over Leveraged corporates and consumers are a risk to the dollar when interest rates soar as bond prices collapse with real interest rates falling despite nominal rates rising with minimal Fed incremental increases.