Gold forecast

We have been waiting for a big drop in gold. Instead, as we see in the chart on the left (click on it to enhance), gold has just made some minor drawbacks in its way up. There must be something really weird going on. Gold is not such a good hedge against inflation, but against deflation. What are the markets expecting?

On the other hand, we will probably see gold falling down to the the previous resistance, now support, to establish a new upward trend.