Nearly three months later, there’s word that it is about to happen again, only this time, at the hand of either Moody’s or Fitch. In a note to clients, Merrill Lynch economist Ethan Harris writes:

The market never breached its major long-term 200-day moving average support on the late September price plunge, which keeps the longer-term technical trend firmly in the bullish camp

Gold prices, down 14 percent since touching a record in September, are poised for more losses, according to technical analysis by Steel Vine Investments LLC.

While gold has been coiling modestly higher over the past several weeks in a triangle-like type of pattern, one gold technician pointed to Monday’s action as a good risk/reward buying opportunity.

Gold prices could rise next week, supported by ideas of greater stability in Europe and better-than-expected economic data in the U.S.

Fitch also placed viability ratings, and in some cases credit grades, on negative watch for seven global banks including Goldman Sachs Group Inc. (GS) and Morgan Stanley because of new regulations and economic developments.

“The real test for gold however will come when global economic/market sentiment sours again since the sovereign debt crisis… is far from fixed

Comex December gold futures prices are trading sharply higher early Monday, on bargain-hunting and safe-haven buying interest following recent strong selling pressure and amid the festering European Union sovereign debt crisis

The majority of participants in the Kitco News Gold Survey expect to see higher prices next week, but those who see weaker or prices unchanged were equally divided, as the gold market continues to try and heal after the recent sharp break in prices.

I know for some people they are thinking, ‘Oh no, my gold has lost value.‘ Your gold is still your gold, your silver is still your silver.

I have a feeling that all of this volatility is on the speculative end. It’s the leveraged players, it’s the hedge funds, the big money that’s gambling. The physical market is not driven by speculators, it’s real demand by people from all around the world who want to save and who don’t want to do it in currencies where the interest rates are at zero and where the printing presses are running at full speed.