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In more concrete news, Russia and Kazakhstan added modestly to their gold hoards while Turkey for the first time in a year allowed their holdings to fall. 

"The flows in the central banks are pretty small now, the big shifts are gone," Justin Smirk, senior economist at WestPac Banking, said from Sydney. "Central bank buying might give us a little bit of a floor, but they're just soaking up some of what the ETFs are selling. You're not going to see central banks coming in to push the price up." 

In a bit of wishful thinking, consumers in India have depressed purchases of gold jewelry by 40%, hoping for prices to drop further. Might as well wish for a pony for your birthday.

John Ing of Maison Placements Canada said "The good news is that my expectation is we've seen the bottom for the gold prices. So the [index is] going to be much higher. [When the price reaches] $1,500, $1,600, they can make money." Maison is known as a rather conservative investment house in Toronto.

Of course, what happens in the American economy and to a lesser extent in Europe will drive prices via what notions analysts hold about further easing. July, though, as in New York and London, a slow month for changes in central banking approaches. Unless there is some sort of absolutely revolutionary news economically, we can expect the U.S. Fed to hold steady and Europe, pushed by the Germans, may slow their recovery "easing" slightly.

We still have to hear from the Chinese next week, who may just be waiting to see what goes on in the FOMC and ECB meetings before announcing their moves to re-boot the big Asian economy. Japan may be doing the same although their course plot points seem to be pretty much set. 

Wishing you as always good trading,