[quote="Al_Dente"]$GOLD is still testing strong support at the uptrend line drawn back to 2008, which has held six times this year.
If she can hold it again, upside resistance is the 1752 zone. If she breaks, she will head down toward the 1525 support zone, where (last time) China was reportedly a bulk buyer. Short puts might like 1525 if there is any premium there.
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There is no multiplier applicable to QE money, while in "normal" times banks would lend out 10 times more than FED infuses into banking system against USG debt. Today the multiplier is may be 1 and loan growth speed is far below precrisis levels despite huge excess reserves.
What gold price is measuring, is the amount of high power money ( issued by FED vs. USG debt=USG public debt ) by now plus discounted future USG debt flows. If the speed of USG debt generation will fall below certain limit, they will have neutral or negative effect to gold prices due to discounting. ( From Ivar's ) over at Ferguson's blog. (The inflation hype trade for PM's is not discounting the counter balance of the Treasuries return on their maturing debt investment against total QE?)
http://www.youtube.com/watch?v=oNx2rH6hHog