Gold is getting beat up once again today, down $54 to $1640. The gold bugs (like the bond bulls) have been clinging to QE3 and they are starting to throw in the towel.
At the same time, Chinese growth slowing puts a damper on retail demand. That leaves only central banks as marginal buyers but that won’t be enough to stall downward momentum.
Worries about inflation will eventually spark more buying but that is a distant blip on the horizon.
The 61.8% retracement of the Jan-March rally at $1624 is support but I expect a fall to the $1525/50 range.
