Could China be behind ongoing gold market volatility, as the flood of gold from west to east gathers pace

Gavin Wendt

Could China be behind ongoing gold market volatility, as the flood of gold from west to east gathers pace? There's no doubt that China has continued accumulating gold, but it has not announced an official reserves increase for some time. (VIEW LINK)


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Hock Meng Tay

Yes. China physical gold demand is still pretty much intact. Guess the Chinese government might be paring back its US Treasuries due to the drop in prices, and stocking more gold reserves. Do you think that it will be as large as the size of Fort Knox, given the amount of gold that they are stocking up?

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Hock Meng Tay

The article mentioned about the relative under-performance among junior gold miners due to cost overruns following the plunge in gold prices since April 2013. I think it is also part of the dawning era of the so-called 'commodity supercycle' . Looking at the chart of ticker GDXJ, one can see that junior miners have been underperforming. The chart is showing continued downtrends. Any idea what is the support price level? Currently trading at USD 31.40.

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