I just attended a coaching session with my investment guru. He said that gold is not correlated with inflation. It is correlated with fear. Right now, most investors are shifting from bonds to equities, so it is unlikely for gold to rise anytime soon.
I checked the technicals and must conquer. The monthly chart showed that it is still in a downtrend. The rally that ended in Sep 2012 has still not bottomed out yet. 2014 might be a better time to go into gold, because inflation will outstrip 10 year US Treaury yields.
The US 10 year Treasury yields just rose above 2%. Watch out because it's a Canary in a Mine Shaft. It indicates inflation. 2014 could be a year of inflation and over heating. All the money printing will finally rear its ugly head. Anything related to inflation will do well, e.g. hard assets like real estate (except in countries where governments are trying to curb it) in the US, Europe (especially Spain, Italy, Greece, the UK and Australia), commodities and mining stocks.
