Gold has managed to rise just over $100 since its intraday lows at the end of December 2013 – an almost 8.5% bounce – and is now hitting levels last seen in November. At times it has been far from convincing in its efforts to regain momentum, but today’s action will be warmly received by the bulls. However, it is a close above recent highs that they are really yearning for.
Yesterday saw the China Gold Association (CGA) announce that demand for the precious metal has increased by more than 40% over the course of 2013; a total of 1176 tonnes was purchased for a combination of jewellery and bullion investment. The company’s annual report now shows that China is the world’s largest buyer of gold, taking over the long-held mantle from India. There is also a sizable quantity of the metal that is mined inside the Chinese borders, but this has not been commented on by the CGA.
We have mentioned over the last couple of weeks that a close above $1268 might be a sign that the precious metal could make a concerted effort to tackle the $1300 level; so far this seems to be playing out.