What is gold doing?

To me it looks like gold is going to head south from logic or manipulation...

Logic=markets are rallying and m2m has been replace by mark-2-fantasy, so who needs it as a safe haven? Also inflation is coming back and gold is priced in as a deflation hedge and thus overpriced by the small amount of inflation that is coming up. So if inflation is heading back then why not buy gold you say? Well because copper is at 2.1 and oil is under 50 and they are the better bargains right now…this makes logical some sense to me.

Manipulation=the price was strangely brought down before the announcement of the fed buying bonds and we got a $70 reversal in no time. Had gold remained flat like most other markets we would have been north of $1k and been back in the headlines with every trader and investor in a mad panic with gold holding above the $1k with it as support rather than resistance…that day seems like a rather obvious manipulation.

Well instead of being over 1k with it as support we are looking like we will sell off with the safe haven/inflation logic above. And most investors and traders are saying, “well if it could move higher after the fed bought bonds then it may never and we have a solid double top, plus the IMF is selling so there is no reason to buy…the gold move is over”. And for now the charts are saying some of the same things. Technically it does look like it could be a double top(Bearish) or the right shoulder of an inverse head-n-shoulders (Bullish). But the 20 and 50 EMA are crossing which usually means a reversal in trend. MACD is pointing lower but stochastics are oversold. If we rally to the EMA's and fail then prob go rather lower from there. I for one might buy some puts on the GLD as a hedge…

Stay tuned...