CHINA, INDIA BACK IN GOLD MARKET IN A BIG WAY
In the past two years, we have seen an odd phenomenon in the Gold market. The weaker the price, the stronger the physical demand. China and India are among the countries hungriest for physical Gold and their appetite has been voracious. India’s Gold imports have risen 450 percent. Combined, India and China are buying enough to cover close to all global mined supply. It is also greatly suspected that the Chinese government is stocking up on Gold. They have not reported their Gold holdings since 2009, though it is expected they will do so when it becomes politically expedient.
Today was unusual in that both Gold and stocks went up. Stocks were up more than 200 points, while Gold passed $1,250 per ounce, on no particularly significant news. One trader credited today’s upswing as simple fluctuations. Gold continues to find support on global growth concerns, especially in the eurozone and China. China’s gross domestic product grew by 7.3 percent in the third quarter, the worst number in five years, though it was marginally better than economists had forecast.
At 5:15 p.m. (ET), the APMEX Precious Metals spot prices were:
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