The Globe and Mail reports in its Wednesday, Nov. 26, edition that gold prices are up about $40 an ounce, to just under $1,200, since the end of October, when they hit a four-year low of $1,160. The Globe's Eric Reguly writes that gold shares, however, are not responding. With the exception of Kinross Gold, one of the industry's hardest-hit players thanks to its Russian mines, the prices of the biggies have dropped over the past month. Mr. Reguly says the rising greenback could explain part of the share slump. Mr. Reguly believes falling oil prices are also playing a role. He is convinced falling oil prices are triggering disinflation everywhere. Mr. Reguly says in Europe, outright deflation is a clear and present danger, which is why the European Central Bank is warming up the market to the idea of American-style quantitative easing. If you buy gold as an inflation hedge, it follows that disinflation or deflation would encourage you to sell gold. Mr. Reguly says that is what appears to be happening, thanks in good part to oil prices that have fallen by 30 per cent since June. Societe Generale analyst Michael Haigh believes gold's recent modest rally could be short-lived.