Gold trend

RSI and the price of gold shows 4 waves divergence, i.e. gold price has four peaks, one higher than the previous one (except the last one), while RSI also has 4 peaks, but one lower than the previous one. This is a very strong signal of an adjustment of gold price.

But the adjustment might just provides us a good opportunity to buy gold. It seems that gold still has a long way to reach its peak. The current international monetary system that uses the US dollar as the major anchor is breaking down. Confidence in the US dollar is weakening around the globe. That's why we have witnessed price surge in commodities. Before we reach a new international monetary system, gold will protect us from currencies devaluation and the coming inflation.

2011 crystal ball

From Bloomberg: