On the technicals, gold is currently at interesting levels. The Demarks and the RSI have dropped to the point where GLD (quote) is looking unusually oversold. The RSI, for example, is at its most oversold level since April 2009 — when gold was $880 an ounce.
Likewise, gold is not far at all from testing its 200 moving day average support of $1,282. That line should be the base on which gold bounces.
If not, we are probably living in the whimsical retail story many talking heads are going on about. But if this is a true structural shift in institutional asset allocations, then a crash through the 200 mda line — especially given what else is going on in the chart — seems unlikely.