The spread between the prices of gold and platinum has been narrowing in recent weeks. Today, the two have switched places and back several times at about the $1,240 level. To put this in the simplest terms possible, there appears to be a pattern in gold and platinum prices, showing that when a price inversion such as this occurs, it will inevitably unravel after a few months, but only after the price of both metals has fallen.
Fundamental indicators are also going against gold right now. Other commodities prices are tumbling, and only the wild volatility in stocks, as well as a certain amount of panic over Ebola, are keeping metals prices as high as they are. If the inversion persists, and even if it doesn't, gold will likely fall well past the $1,200 level once stock prices settle into a comfortable range – even if that range is 10% lower than it once was.
Platinum and gold are comparatively rare in the earth's crust, but platinum requires far more processing, hence these inversions are generally unsupportable in the long run.