This makes a lot of sense: KAPLAN'S CORNER: Question: Why does gold not seem to respond to news the way it used to? Answer: One can travel for many miles on interstate highways without actually seeing thousands of wildflowers that are growing by the side of the road. In order for gold to react to news, or more accurately, to seem to react to news, there has to be a critical mass of investors who have become disenchanted with the stock market and are seriously considering or have already put money into alternative investments such as gold and its shares. This critical mass must be alert to the price of gold and ready to buy or sell it on short notice. Since most investors today are convinced that the stock market is the place to be, very few people even have any idea what the price of gold is, or has been recently, and couldn't care less. Therefore, gold is unlikely to have a strong reaction to any particular news event. This has generally been the case during equity bull markets. In bear markets, or during periods of time when a significant percentage of investors believe that we may be in a bear market for equities, gold will react because investors will buy or sell the yellow metal and/or its shares with much more enthusiasm. Gold reacted most strongly to news from 1973 through 1982; it is no coincidence that this coincided with the greatest bear market since the Depression.