I think that gold is caught in a range trade since its big run up to a record high.
The range is roughly between 1550/1570 and 1800.
I do not think the government is funding this directly, but indirectly the funds are coming from the Fed and its cronies, and well as de facto policy endorsement from the government, so that the regulatory bodies turn a blind eye to the massive shorting at opportune times.
The short interest money flows are getting rather intense as the gold price dips lower to the bottom end of the range, showing increased resistance from stronger hands. This would also indicate a rising or stable interest rate caused by short selling rather than by long liquidation.
The metal bears spent quite a bit of time and ammunition in the middle of last year trying to break support. So I think we might see another contest at that level hold again, or even become exhausted before we reach it. I cannot know how strong the hands of the metal longs have become. And of course, the ready supply of paper to throw at them.
I think the leverage in the metals is creeping to ...