@cypherdoc:
You are soooo right.
Gold will surprise almost everyone when it goes down hard against the USD. We have have seen already the top today (went short at 1766 $ today) . But even if not, it will start from a bit higher levels and still has huge downside.
Based on my chart analysis, 1300-1400 is the first target, but will fall soon to lead then to 1000-1100. And then we will see. If this does not hold, 600-800 are next.
Can you expand a little on what you're seeing? The bull run in gold has been long, so a correction makes sense, I just don't see it yet. All I see is it trending within its channel as it has at 1400, 1500, 1600.....
Outside of the charts, I can see some evidence. No QE3. Both the AUD and CAD (ie. the commodity currencies) basically back to parity. Then again CHF still taking off...
Speaking of which, are you short CHF? Seems to be the safer play to me. If gold drops, so will CHF. The Swiss have come out publicly and stated they're trying to devalue on top of that. Seems like more avenues for success.