The conection between gold reserves and currency in circulation doesn't exist.What does exist is the connection between global cost to produce and price.So the money in circulation will only have an effect on local production cost.
Average Global price to produce US$500 Median producers margin in 2008 %27 Fair value US$635 Current value US$1093
Obviously you can play with the margin
At the current price it would seem that there is a hugh rise coming in global production costs or a lot of speculation and of course it will be up to the individual to make a decision on which it may be.