if there's a fear of a global disaster, people would want gold, hence the price should rise.
In the big picture that's absolutely correct, which is why central banks and other smart money players all over the world are buying gold.
However, this price drop was driven by Bernanke's announcement about the 'Twist', which gives the perception that inflation (as a result of QE) will be muted in the near term so investors foolishly sold gold to the banksters for dollars and bonds.
Don't forget that every trade has a counter-party; ie: if you're selling, someone has to be buying and vice versa.
Also, it's all very much orchestrated. The Fed and the Administration doesn't want to see high gold prices, as it's a measure of confidence in the dollar. Eventually, real demand will overwhelm their ability to manipulate the price.
∆∆
| 
