Salient to Investors:

The most important factor in gold’s decline is that global inflation is falling and gold bugs are scrambling to exit their gold positions at any price.

The JPMorgan Chase global consumer price index shows global inflation peaked at 4 percent in 2011 and has fallen steadily since.

JPMorgan’s main bottom-up collection of analysts’ forecasted price trends sector by sector around the world shows inflation rising very slightly for the rest of 2013: and its top-down analysis shows inflation moving down closer to 2 percent in half2 2013.

Joseph Lupton at JPMorgan Chase said the inflation decline is partly due to supply bottlenecks easing and demand growth slowing.

Goldman Sachs warned last week that the retreat in gold was accelerating after the longest rally in nine decades.

Donald Selkin at National Securities Corp. said the perception is that gold is not needed as a safe haven and people are looking at the stock market and are stunned, and there’s no inflation.

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