Gold prices reclaimed the USD $1200 price level Friday even as US GDP was revised higher. With sentiment weakened further by the 'surprise' QE taper last...

Gold prices reclaimed the USD $1200 price level Friday even as US GDP was revised higher. With sentiment weakened further by the 'surprise' QE taper last week, many were expecting the June low of USD $1180 to fall, but so far it's held firm. Despite this, we wouldn't rule out a break below USD $1180 in the next few days between now and the New Year, especially with volumes expected to be light. Whilst gold will end the year down over 25% (in USD terms), and whilst bulls are licking their wounds, they'll be encouraged by developments on the physical side of the market. Physical demand shows no signs of abating, with the latest estimates suggesting Chinese gold demand has now reached 2,000 tonnes for the year, roughly equal to an entire year's worth of global gold production excluding China (which doesn't export a single ounce). That's some 'end' to a bull market