Adding to the trouble for gold is that some market observers believe the Fed charting a course for more rate hikes, though at a measured pace, in 2016 sets the stage for further upside in the U.S. dollar. Of course, that would be punishing for gold and other commodities, which are denominated in dollars.

“Investors embarked on the biggest three-day buying spree in gold-backed exchange traded funds for a year as bullion rallied at the start of 2016 amid a stock-market slump. Bullion jumped 4.1 percent last week for the best performance since August amid a global equity rout spurred by a stock market slump and a weakening currency in China,” adds Bloomberg.

SPDR Gold Shares

Tom Lydon’s clients own shares of GLD.