If "risk off" does become the theme for the next few weeks, months, then gold will no doubt get hammered. With the upcoming elections this scenario could easily play out.
Having said that, in my opinion, the trick is trying to pick the moment just before Benanke announces QE3. He is giving a speech on Thursday, which may offer some hints, but I still think that such an announcement could be a few months off just yet.
Once he looks ready to pull the trigger, then we can start moving from USD (stocks or even cash for the risk averse -which the smart money should currently be in) to gold. Until this point is reached, gold may well be taken down to some staggering lows, but I have no doubt that the smart money will be buying everything they can get there hand on down there. So that they are ready and waiting for Benanke to let loose.
Any short or even medium term traders already in gold are a bit premature, and may have to hold through a big dip to come. Definitely a buy soon though.
