"Wednesday’s sell off is being attributed to one massive sell trade of 31 tonnes
on the Chicago Mercantile Exchange during Bernanke’s speech. There are rumours
of a large US fund selling and also that the selling may have been by JP Morgan
– rumoured to be acting on behalf of an Asian fund. Who sold off and why is less
important than the fundamentals of the gold market. Absolutely nothing has
changed regarding the fundamentals of gold which remain as sound as ever with
broad based demand from store of wealth buyers, institutions and central banks
internationally and especially in Asia. Good volumes have been seen on the
Shanghai Gold Exchange in recent days. In India, lowest gold prices in a month
saw strong physical bullion demand and physical buyers hunting for gold bargains
to meet the wedding season demand. India remains the world’s largest buyer of
the yellow metal (900 tonnes/year) but China is expected to outpace them this
year according the World Gold Council. ETF holdings gained 238,674 ounces to a
record high of 70.76 million ounces, showing that institutions and investors
remain keen on gold. Also, options data has not changed since Wednesday’s price
falls..."
at http://www.zerohedge.com/news/asia-buys-gold-after-massive-single-trade-sell-during-bernanke%E2%80%99s-testimony
at http://www.zerohedge.com/news/asia-buys-gold-after-massive-single-trade-sell-during-bernanke%E2%80%99s-testimony
