On Wednesday, gold fell to a two-week low with investors nervous that the precious metal may have further to fall.
"(Gold) trades inversely to the dollar and in tandem with equities," explains VTB Capital analyst Andrey Kryuchenkov. Considering the greenback is getting stronger and the stock market weaker, that doesn’t bode well for the gold bulls.
However, that’s not to say gold is heading into a freefall. "I think we can hold on at $925 -- there is pretty good support there -- and I think we will not get lower than $920," says Kryuchenkov.
In fact, there could be some bullish catalysts for gold bugs largely triggered by China.
"There is some concern that the (Chinese) government could try to tighten up credit conditions in China, which could be negative for lots of stock markets and therefore positive for gold," explains Daniel Smith, an analyst at Standard Chartered
Meanwhile, the greenback appears to be getting stronger with the dollar index extending gains against a basket of currencies as Uncle Sam attracts safe haven investors.
But that’s not surprising. The dollar typically benefits in times of extreme risk aversion.