The bears will suggest that gold was unable to benefit from a weaker US Dollar and generally strong physical commodity price action. The bulls might argue that a down shift in Euro zone debt fears was primarily responsible for the gold market being off balance for a large portion of the Wednesday trade. Seeing the Portugal debt auction go off somewhat favorably apparently downgraded the concerns from upcoming auctions in Spain and Italy. With such significant gains in grain prices today, the gold market could have benefited from revived inflationary fears but apparently gold was in a position to embrace that angle. Other traders suggested that ongoing support for the Euro zone from China was another issue that served to tip gold off balance today.
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