Gold’s Action Last Week Strongly Points to China

The price action on Thursday and Friday strongly hints that it was demand in China that spilled over into morning prices in Europe. Furthermore, on Friday morning Eastern time when Chinese speculators were gone for the weekend, prices fell from $2377 to close at $2360 pointing to western market-makers taking the opportunity to claw back some short positions.

Whether gold prices rise in coming weeks will depend largely on demand from Asia/China continuing. Some analysts are dismissing this demand...