(5-21-13) People have asked me -- is the decline in Gold price tantamount to a correction?
In the recent price decline, Gold is acting as it should. In other words, Dollar moves higher, so the Gold moves lower.
It should be remembered that Gold is a commodity and not immune to the bust in the 10-year super-cycle which has affected commodities in general. This is moving all commodities lower. Copper has moved into fresh lows.
Also Silver has been signaling lower Gold prices for the last ten days because Silver has moved underneath the Gold, meaning that it's lower than where it was the last time the Gold is where it is currently.
Now we're having a bust, a crack or an end of the 10-year super-cycle of commodities. Central bank driven liquidity, which had been supporting commodity prices, isn't supporting them anymore because finally commodity prices got so far away from their underlying supply/ demand fundamentals that cheap money alone couldn't support prices anymore.