Ignored as gold investors focus on the negative of late, says the team at Ned Davis, are real interest rates ... they've stopped going higher. Of any number of indicators, real interest rates historically have had the strongest correlation to gold prices.
As for weakening Chinese demand, purchases are still massive and the same trend of slowing occurred in early 2013. Other pluses: Reforms in India which could boost demand there and an ECB about to maybe go negative with rates or launch QE (policy meeting is tomorrow).
Bullish, but respectful of the price action, the team isn't recommending getting too long yet. "If you are looking for a short-term entry point, this does not appear to be it. Gold’s price action is poor, and sentiment is not pessimistic enough to take a contrary bet at $1246 per ounce."