GLD continues dishoarding gold; Western investment demand remains weak

One look at the following chart pretty much tells the tale of gold demand in the West. It continues to sink and as it does, so does the gold price.

Today's slide in price is disconcerting as it has erased all of the gains it put in earlier this week. Friday is going to therefore be a big test for the yellow metal. Will buyers show up and keep the market supported above $1210 or do we go back down to revisit those lows once again?

With "The Hobbit, the Desolation of Smaug" due out tomorrow, let's hope it is not a case of the Desolation of Gold. Fridays have not normally been fun days for the gold bulls.