Chinese GOLD Demand Picks Up After Holiday

Zurich-Switzerland (Oct 12)  Chinese traders were back in the market following their Golden Week holiday, with strengthening demand for kilobars prevalent in the last two days, says MKS (Switzerland). “Apparently onshore jewelry sales were brisk during this period so manufacturers have had more appetite to load back up on the metal. This has helped to stabilize gold from the free-fall seen early this week and raise a hair of concern for short specs (speculators),” they say. There may be some further upside to prices as short holders are still dominant and rising prices may force them to cover. “For now though the conviction of specs and producers to sell/hedge is still a force to reckon with and rallies are still being looked at by most as good selling opportunities. Time will tell. I feel a weekly close above $1,220 will put the gold in decent stead to move into the $1,235-45 resistance zone, but still think this is a good selling opportunity.”  

Source:  KitcoNews