Gold set to rebound?

Gold has seen a roughly one-year consolidation/correction of about 18% since the high of $1,900 was made in September 2011.  The price seems to have found support at the 2 year average, but is 18% a big enough decline?  I would start a position or increase an existing position at this level.  The macro headlines and figures are deteriorating which paves the way for Helicopter Ben and all of his fellow central bankers to begin printing money again.  This is not the correct response, but Bernanke will try to prevent a deflationary spiral at any cost...even if it means sustained higher inflation.  We'll have a post later about why Bernanke and the financial system are deathly afraid of deflation.  In the mean time, add the only real currency that is worth anything!

Source: Bloomberg