Gold and silver are like an insurance policy keeping them "safe" against unforeseen events and protecting their wealth during times of distress or distrust in the US dollar (currency debasement). If the market views the US economy is looking healthy and they have confidence in the Fed with no imminent threat of economic and financial calamity, then it will feel less need to own gold and silver. For instance, the data from the Commerce Department showed US 3Q GDP increased to a surprising 4.1%. Until the perception/sentiment changes to that of "needing" to own and gold and silver as insurance to protect their purchasing power because of a loss of CONFIDENCE in the US dollar, gold and silver is going to have a tilt to the downside and struggle.
A hedge against growth with inflation pressures. The Goldman Sachs Commodity Index being sharply lower is not an indication of inflation pressures yet.
Is Asian demand going to be strong enough to absorb Western based selling of the metal?
Commitment of Traders (COT) report- "There can be no capitulation in gold and thus no end to the selling as long as speculators REMAIN AS NET LONGS in the gold market" Trader Dan Norcini
Until there is a change in the factors stated above, looks like we may be able to buy gold and silver at cheaper levels than at the levels we are today because we would expect a continuation of the down trend.
