There are a few very strong and healthy reasons why gold crashed last week. Here they are:
1. It hit its bear market trend line two months ago and could not punch through it, and eventually collapsed. This will fall on th second attempt.
2. In the short term price is determined by the futures market and there was a fifteen year high in the number of speculators betting on a continuation of a rising price. This is music to the ears of short sellers. There was no one left to buy and once it fell to resistance they ran the stops.
3. The Chinese stock market was closed for a week last week. The last two years have seen identical sell offs in the US when demand from China was absent.
4. Gold and gold stocks had run so far ahead of their 200 day moving average that the yen were virtually in the stratosphere. Sentiment had to be rebalanced before the next leg up could begin. The bear market usually topped out on the 200 day moving average and now the bull market is bottoming on the 200 day moving average.
Trust this helps