I think Ben Bernanke is a genius. The US economy needed a stimulus, but since its economy was consumer based government initiatives wouldn't help. So he did something else...
By manipulating gold prices to immense levels, he created a baseline for stimulus debt since US government had 8000 tons of gold, the price increase would easily cover the debt for stimulus. That was the first part.
The second was about the 150000 tons of gold world had. The sudden price increase created a bubble, able enough to fuel US consumption. People sold gold and bought US goods.
Now Ben has to carry the excess bubble from gold, back to economy to see if it bursts again. He does this because it is himself, who created the supply and demand, BOTH, by manipulating gold price. What he wants to do is to carry the bubble he created into different sectors of US economy, so these bubbles fuel consumption without being accumulated in one single sector, like housing, or else it gets out like a loud fart and people become jobless.
In my opinion real gold price is something between 500 - 600$/onz. I expect gold to see below 1000$/onz before a recovery, within two months. Be careful at 1275, 1225, 1200, 1100. I have entered scalp shorts within this week every day from 1330 to 1310, sl at 1350 without a single loss. Stupidly risky behaviour but worked fine. 1275 is a support and a probable rebound will see 1290 - 1310's again.
Usd/Jpy is green to go long AFTER gold falls and jumps back from 1275 and daily RSI below 50. Long range target 130. Best to buy it near daily RSI 30. Japan needs to devalue more to adapt this move.
Eur/Chf is moving to touch 1.245. Do not be fooled, It may fall back to 1.22 really quick.
Currency war just kicked into overdrive, US is trying to survive without aid, while bleeding to death. I love that risk taking, semi depressive mood. Epic. Independent. You could end up dead but what the hell...