There are different kinds of groups in the gold market and the price of gold reflected in the gold charts is simply the history and present relationship resolving between them. Do not try to understand every move up or down in the price of gold this is simply impossible thing to do.
As we all know the gold market is both physical and paper market, some players are just prudent investors who look for wealth protection and others are extremely leveraged speculators looking for a volatile market and quick profits.
I believe hedge funds and automated systems are also getting more active in the gold markets, needless to mention central banks, bullion banks and gold miming companies.
The most important facts you should all remember:
1) The huge short positions which will provide both fuel and floor for this great gold bull market.
2) The emerging dispute between central banks themselves regarding the gold reserves.
3)Thousands years history of gold as money.
4) Depleting gold reserves and stagnating to declining gold mining production that even the most sophisticated technology could not improve.
Click to see PAAS and NEM annotated charts