Well, here is a post from JimSinclair's website.
An excellent explanation for the recent decline in gold.
'''Posted On: Tuesday, April 29, 2008, 2:17:00 PM ESTJim's Mailbox Author: Jim Sinclair''''
"""""""He explains it well: here is an excerpt
The media claims that the FED is now hawkish, the ECB will cut faster than the FED, FED cuts will slow and the credit crisis is now over>>>>>>>>>>>>>> as they ignore the impact of falling tax revenues on the budget deficit and Central Banks efforts to diversify out of the US Dollar. """"""
Meanwhile, Financial stocks in the US are at their highest levels in recent months, as the market believes the worst is behind them. No one seems to be concerned about the US Bond Insurers or the CDO,CDS mess anymore. Meanwhile, the threat of counterparty default in the derivatives market looms large, as the housing market continues to decline. Valuing these stocks on trailing 12 month earnings(2007 earnings), and then claiming them to be undervalued is just absurd.
GOLD is still a buy on declines. Averaging on declines, with a view to build up a large GOLD holding is important, keeping the big picture in mind. After falling below $900 and then through supports at $887.50, some analysts have set targets of $850 and then just above $800.
While it is impossible to set a bottom in the near term, Gold Bullion investors must be patient.
As Warren Buffett recently said, deleveraging is a long and painful process.There is more pain to come. So don't get taken in by the recent rise in US stocks.