China Throws A Big Wet Blanket Onto The Gold Market

Sorry gold bulls, China does not intend to make some huge gold purchase, driving the price towards the sky.

Yi Gang, vice-governor of the PBOC, noted that while gold could be a nice asset, China intends to proceed “cautiously” with any further purchases, according to Caijing. He apparently cited general market conditions for the bank’s hesitance to purchase more.

In recent weeks there’s been a lot of talk of China buying a big chunk from the IMF, which is in dumping mode, and so without China aggressively buying, the fear is that this will hit the market and depress prices.

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Here’s the latest price chart:

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Photo: Kitco.com

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