Gold prices have soared and some are buying on fears that inflation will weaken the dollar even further.

One hedge fund whiz kid, David Einhorn, says forget about whether the consumer price index rises or falls — just buy gold anyway.

Gold doesn't care about inflation, just if Washington is managing its economy well or not, says the president of Greenlight Capital.

“I have seen many people debate whether gold is a bet on inflation or deflation. As I see it, it is neither.

“Gold does well when monetary and fiscal policies are poor and does poorly when they appear sensible,” Einhorn told The Wall Street Journal.

Gold prices rose in the Great Depression and when FDR weakened the dollar, Einhorn says.

Gold fell under former Federal Reserve Chairman Paul Volcker’s austerity programs and again in 2001, when the United States was optimistic over budget surpluses.

“Gold should do fine unless our leaders implement much greater fiscal and monetary restraint than appears likely. Of course, gold should do very well if there is a debt default or currency crisis,” Einhorn says.

Inflation or not, the U.S. dollar has taken a beating over the past year as deficits continue to mount, which is sending gold to sky-high prices over $1,065 an ounce.

That, traders say, will keep investors ditching the greenback and snapping up more gold.

“The gold market really comes down to where you think the dollar is going,” Citigroup analyst David Thurtell told Reuters.

“We are still pretty bearish on the dollar, so that makes us favorable to gold.”