We're going lower.
From Kitco:
A.M. Kitco Metals Roundup: Gold Weaker, Hits 7-Month Low, as Bearish Technicals Encourage Sellers
Gold futures prices are modestly lower and dropped to a seven-month low in early U.S. trading Thursday. Bearish chart postures in both gold and silver are allowing the sellers to dominate activity, amid a lack of major, markets-moving fundamentals news this week. December Comex gold was last down $1.10 at $1,244.20 an ounce. Spot gold was last quoted down $5.60 at $1,244.00. December Comex silver last traded down $0.136 at $18.795 an ounce.NYMEX Dec. futures $1239.80 down $5.50 with a $1235.30 low. Silver Dec. 18.685 -0.241, low print $18.57.
In overnight news, China’s consumer price index was reported up 2.0%, year-on-year, in August, versus up 2.3% in July. A rise of 2.2% was expected for August. That’s some good news for the beleaguered raw commodity sector, as it suggests China, the world’s largest raw commodity importer, won’t have to tighten its monetary policy to keep inflation in check.
In another sign of the present ill health of the raw commodity sector, the United Nations reported Thursday that world food prices fell to a four-year low in August. Crude oil and grains are leading a price slump in the raw commodity sector. Brent crude oil prices fell to a 16-month low overnight.
The surging U.S. dollar index is another bearish underlying factor for the raw commodity sector. The dollar index is at a 14-month high. Most major raw commodities are priced in U.S. dollars on the world markets. When the greenback appreciates against the other currencies, it makes commodities priced in dollars more expensive to purchase with those currencies....MORE
It almost appears to be a case of what U. Penn's Professor Seligman calls learned helplessness:
"...not trying to get out of a negative situation because the past has taught you that you are helpless."
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