I dont see gold doing much until inflation sets in. All that wealth lost in the markets means people have less to put into investing now and gold in particular. My theory is that this time around a lot of weath that people have left (including nations) will go into commodities that have uses. Thinking oil, metals like copper, and agriculture commodities run up more than gold this time around.
Interesting that China bought a lot of US debt according to the news. I would have thought China would be buying more commodities. And more heavily into commodities rather than gold. I guess the export to the US is very important to China. If the US$ falls i am sure China will be buying a lot of soft and agricultural commodities from the US. I think countries have learned gold is not the only measure of a nations wealth. If we had not had this major correction last 6 months and were facing inflation i would think gold would do well. I am no expert just an opinion.