Why we do not have a signal of inflation in gold price

I went out of my shorting. I was smashed by the market.

I fell into the trap because I did not have time to read some news. Now I m reading a lot and I found this:
http://www.marketwatch.com/news/story/G20-supports-IMF-plan-raise/story.aspx?guid={5ABAE8F2-060D-44BC-9905-EB79665AEACE}

As a help to understand what is happening, I tell you that the quantity of the new gold from mining is about 2% per year. The central banks with their selling of gold have flatten the price during the past years, if they did not do that, the price of gold will have risen sharply from 1999 cause the money supply has been impressive.

The goverment is trying we do not realize of the signal of inflation that gold was sending, and with this actitude they are trying to avoid new fresh money going in to gold market.

I am worried about inflation and the politicians are trying to direct our money to the stock market.

I do not trust, I am not sure waht I should do. I am in cash now.

Do you know what to do?