China buying gold?
.
By Peter Brimelow, MarketWatch
.
Reuters
Five-tael (6.65 ounces or 190 grams) gold bars are seen at a jewellery store in Hong Kong in this April 21, 2011 file illustration photo.
NEW YORK (MarketWatch) — Gold’s rebound puzzles the bugs — but they’ll take it anyway.
.
Of course, I was just reporting what the investment letters say — but I felt bad anyway.
.
Since India is in effect the default buyer on a gold downswing, this means critical underpinning is back in place.
.
.
“Gold closed slightly lower today at 1658. The ability for gold to hold the 1656 level (the 50% retracement of the December to February up-move) and to close above the short-term bearish trend channel, is encouraging for bulls. Gold also clearly rejected the move down below the 61.8% Fibonacci retracement of the same uptrend”
.
.
ZeroHedge reported:
..
“Hong Kong’s gold exports to China in February were nearly 13 times higher
than the 3,115 kilograms in the same month last year… .
.
. HSBC contributed an interesting point:
.
. “China is also the world’s largest gold producer. This is the first time in history, to our knowledge, that the world’s largest gold producer is also a major importer. This implies strong underlying demand, which we believe will help cushion further losses.”
. To return to the immediate problem of surviving the current market, the Got
Gold Report provided important perspective this evening:
.
. “…since the Great Gold Bull began in 2002 gold has finished lower in two consecutive months 13 times, but has yet to finish lower for three consecutive months — on a monthly closing basis. Gold only has to close below $1,668.60 on April 30 for this to be the first period of 3-consecutive months of lower closes.”
. There is still a lot of April left. Over at the Aden Forecast’s GCRU report,
they are (as usual) icily calm. Noting gold remains above its 65-week moving
average of $1,600, it concluded its weekly commentary: . .
.
“…keep your gold shares. They’re solid companies. They’ve been disappointing
but we believe our patience will be awarded as they’re time is coming.”
. “China is also the world’s largest gold producer. This is the first time in history, to our knowledge, that the world’s largest gold producer is also a major importer. This implies strong underlying demand, which we believe will help cushion further losses.”
.
. “…since the Great Gold Bull began in 2002 gold has finished lower in two consecutive months 13 times, but has yet to finish lower for three consecutive months — on a monthly closing basis. Gold only has to close below $1,668.60 on April 30 for this to be the first period of 3-consecutive months of lower closes.”
.
0 comments:
Publicar un comentario