Check this out:
http://www.kitco.com/ind/Holmes/2013...ling-Gold.html
In short, US government manipulation of both its unemployment and CPI figures understate the health of the US economy and overstate its real interest rate. Anything over a 2% real interest rate tends to produce downward pressure on the demand for, and price of, Gold. According to this report, the US is actually running at less than 1%. Yes, people have been duped by some very clever manipulation of economic statistics...but for just how long can the smoke and mirror show continue before the American public and global markets wake up to the degenerate state of the world's powerhouse economy?
Buy Gold.
Technically, since the short-term downward trendline was touched at 1330 (the fourth time the trend line has been tested), the POG has fallen away a lot less than the previous three times. Also, there is a short-term upward trend line forming (not shown in the graph below) joining 1190 (end of June) with 1278 (early Oct) with 1285 (earlier today). Yes, we need to be careful that we're not reading what we want to see happen into the charts, but this could be bullish...
http://www.kitco.com/news/2013-10-10/template_jimw.htm
BC