The coming week could be important for Gold.
Internationally we will know which way Italy will turn..towards a continuation of belt tightening or towards more radical thinking of moving out of Euro or worse, a muddle through caused by an unlikely alliance of politicians of all hues, arguing incessantly with each other.
Investors don`t seem to be worried..the 10 year Italian bond is trading at a yield of only 4.4 %...it used be at 6% during more trying times recently.
If some semblance of stability returns, gold should see a continuation of its current slide.It the political climate turns volatile, then Gold could begin to reverse upwards.
If Ben Bernanke makes new noises of reducing QE or if economic reports point to an improving US Economy, then Gold is sure to continue its down slide.Alternatively S&P 500 could strengthen.
Speculators notwithstanding, what is of importance is to see if physical buying of Gold will continue..
Key markets such as India and China have seen reduction in physical buying, either due to economic situations or due to Government restrictions.
Here is the technical picture of Gold..
The current down trend looks like wave 4. It may continue till end of May 2013 and thereafter we should see another bull run for Gold, taking it beyond 33700.Thereafter Gold could see a multi year decline...Will the yellow metal crazy investors finally decide in favour of equities?