Golds chart does look bullish, but if you look at the period of 1995-2000, there was a extreme price divergence. Gold plummeted as the bubble in equities took a foothold. http://futures.tradingcharts.com/hist_GD19983.html http://finance.yahoo.com/q/bc?s=^GSPC&t=my&l=off&z=l&q=l&c= The common belief is that Gold is about the make a push higher, and that is circulating in the marketplace for awhile. So the bets are increasing in its upward progression. What is common belief is already priced in. If equities break through resistance above here in the sp500. Gold might collapse.
Historically an oz. of gold has bought 17 or so barrels of oil. Now the ratio is about 11 barrels. This speaks to higher gold or lower oil. With the historical ratio intact, oil would be somewhere around $40. I think the $20 or so difference in oil can be called the "Bush Premium"
The futures market and the true demand/supply of gold are not the same thing. The futures market is too speculated & manipulated at times. If those contracts were actually exercised, let's, in the next 6 months, there would be chaos. There is nowhere near enough physical supply to satisfy the futures contracts out there. Also note that the pre-2000 equities bubble was focused on internet & tech, mostly pure BS "companies". The appreciation since 2003 has a strong focus on commodities, but really almost everything is being bought up. Pure asset inflation.
Gold is down hard, you can't hide in Gold. Atleast not for a few months. Its extremely technically bad, when gold couldnt manage a pop up yesterday. And look whats happening today.