From the Trading Desk
Chinese gold imports from Hong Kong totaled 1.64 million ounces in August, down 15% from the same period last year. The figure is the lowest monthly import of the year and represents a 45% drop from the 2.9 million ounces imported in July. Gold trading at multi-year highs has quelled the appetite of the world’s largest gold consuming country this year. With China heading to a one week holiday in a few days, buying out of Asia should drop substantially during the first week of October. Gold is already on tenuous ground and China’s absence next week may be the catalyst to send it below a convergence of support levels. First, there is a trend line that has held nine times since December of last year with support currently at $1,315. The 100 day moving average is at $1,310 and psychological support awaits at $1,300. If all three of these give way, it could be a swift move in gold down to the 200 day moving average at $1,254.
Don’t forget, Jim Rickards says it’s “D-Day for the U.S. Dollar” tomorrow. Of course I debunked this in an article here: The Fear Mongering Crowd – Dollar Death On September 30th Edition – SDRs
Doug Eberhardt is a 28 year financial services veteran and precious metals broker selling gold and silver at 1% over wholesale cost. Doug has written a book to help investors understand how gold and silver fit into a diversified portfolio, how to buy gold and silver, and what metals to buy. The book; “Buy Gold and Silver Safely” is available by clicking here Contact phone number for Buy Gold and Silver Safely is 888-604-6534
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