Kevin O'Leary called this gold volatility pretty well on BNN yesterday. I can't remember which show. It might have been "Squeezeplay." What he said was that he was holding 5% gold in his fund, even though he doesn't particularly believe in it because it doesn't "Pay Daddy." He also said that he was holding as a short term option, because it was a liquid market, while he was deciding what to do with his money. He implied that a lot of other funds were doing the same.

I don't like to hear this, but then, there's a lot I don't like about the major fund players dominating the market. That doesn't change it from being true. The sentiment of a lot of fund managers was gold as a short term play/alternative to the USD while there was so much market uncertainty. They still have an emphasis on investing in other sectors, and a minimal long term weighting of gold in their funds. They see opportunities right now, so they are selling their gold.