Other issues are weighing on gold, too.

“Gold supply and demand fundamentals have been shaky to say the least, with physical demand remaining soft, according to the World Gold Council. India and China, two of the largest Gold markets, have had weak demand, exacerbated by government action. In India, the government demonetized 500 and 1,000 rupee notes to fight corruption,” according to Options Express.

Meanwhile, uncertainty in Europe can also fuel demand in the region. Market observers are calling for a so-called hard Brexit. Elections next year in France, Germany and Holland could also see an increase in anti-establishment and populist parties.

“While the market has been in freefall since mid-November, the angle of the decline is gradually becoming less steep, suggesting prices could be set to consolidate or possibly hunting for a near-term bottom,” notes Options Express.

For more information on the gold market, visit our gold category.

Tom Lydon’s clients own shares of GLD.