Totally predictable.

Investors have been on the hunt for two years for relatively safe havens that do not pay zero return.

They all flocked to oil and drove that price up- which had to come down as the economic crises slashed consumption. [duh]

The majority investors with lots of cash to park now accept zero returns. But some don't and some don't need the investment to be very liquid. Thay can still dump gold if that starts to look like its going down.

And Russia isn't buying gold as a hedge. The number one producer is putting it in reserves to help push the price up.

All of this makes buying gold at least for the time being a no brainer. Folks can always get out, and giving the lack of alternative investments they probably won't have to for at least some time [for at least as long as they all are looking for].

I think its more a sign of volatility and uncertainty rather than panic. It may sound counter-intuitive, but the real measure of people being scared is increase in the purchases of zero return US government T bills.