http://www.marketwatch.com/story/gold-futures-plunging-further-2013-02-21?link=MW_latest_news

Last week’s jobless claims climbed more than expected and data on manufacturing activity disappointed the market. See: Weakening new orders hit manufacturing.

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Why Is gold slumping again?

The price of gold, which touched $1,750 an ounce in December, is now around $1,600 - and falling.

The Philly Fed’s gauge of regional manufacturing activity fell to negative 12.5 in February from negative 5.8 in January. Analysts had expected the Philly Fed index to rise to a reading of positive 1.6.

“The Philly Fed numbers have been the biggest catalyst for the gold rise,” said Karnani, “but it is too early to say whether the rise will be sustainable or that the rise is another bear rally.”

A daily close in Comex gold below $1,566 “will reaffirm the bearish direction” for Friday, he said. Also Friday, “Indian demand for gold will zoom” as banks reopen after a two-day national strike, and there are no U.S. economic numbers tomorrow so gold will likely see technical trading.

Buying Opportunity?

Still, Tyche Group associate director Martin Hennecke said that he believes gold’s recent losses present a buying opportunity.

He said that last weekend’s Group of 20 statement, in which countries pledged not to engage in competitive devaluation of their currencies, as well as the Fed minutes and gold selling in the last quarter of 2012 by notable investors, have spooked the markets lately.

Hennecke said, however, that the debt position of many countries remains as weak as ever, and he believes that they will continue to print money to devalue their currencies in order to control debt.

“They have no choice but to print,” he said. “I think there will be upside [for gold] as people come to realize that the crisis isn’t over.”