Based on the reading I have done you are correct about China's demand for gold increasing. However, the US has contributed to the decline in prices as John Paulson sold 11.5 million shares in Gold SPDR Gold Trust in Q2 of 2013. The FED also doesn't seem to be keen on gold. Some say the Gold price has been decreasing because of improved conditions in the US and the threat of tapering which has now taken place. Tapering has been on the cards for some time so surely this has been priced in to the markets. The improved conditions in the US also needs to be carefully analysed for example, looking at credit extensions vs looking at average disposable income per household paints two different pictures. On China: Which gold mines have the Chinese bought? The eventual depreciation of the dollar is a concern to China since it holds over $1 trillion in US debt. Some more reading: http://www.ingoldwetrust.ch/sun-zhaoxue-us-intends-to-suppress-gold-to-ensure-dollars-dominance Looking forward to the rally on ANG this week! My twitter handle is @GrantGreyling1 - mainly posts related to Gold
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