Why Gold Rose Above $1,400
1) Because while the reduced opportunity cost of not holding long term bonds will increase demand for money (and thus reduce the dollar price of things which aren't assets), it will also increase demand for alternative assets such as gold.
2) Because of gold's special reputation as an inflation hedge, increased inflationary expectations will increase demand for gold even more than most other things.
3) Because it is a good that is traded on financial markets and therefore has especially flexible price, it will react faster than most goods and services on the increase in inflation.
Not surprisingly given the above points, gold reached today yet another all-time high. rising for the first time above the $1,400 mark.