– Gold prices break 6 year down trend on safe haven demand (see charts)
– Chinese gold demand set to surge 50% to 1,000 metric tonnes
– Chinese demand for gold bars on track to surge more than 60 percent in 2017
– Geopolitical risk internationally leading to safe haven demand
– UK election, terrorism and rising tensions in Middle East supporting gold after attacks in London and attacks in Iran today
– Gold is 12.5% higher for year and outperforming stocks (see table)
Gold prices have broken out above the six year long downtrend (see charts) due to a 50% surge in Chinese demand and increasing safe haven demand internationally.
Goldchartsrus.com
Gold is now 12.5% higher year to date in dollar terms and technical analysts say that the breakout is important technically. When combined with the very uncertain geo-political and positive supply demand backdrop, it is a bullish development.
Gold jumped more than 1% yesterday on concerns of conflict in the Middle East after the Saudi coalitions aggressive move against gas rich Qatar and Iran. Today there have been terrorist attacks in the Iranian parliament and at least seven people have been killed.
Finviz
Gold likely also received a safe haven bid due to heightened terrorism concerns after the terrorist attacks in London and the possibility that a left leaning Labour government under Corbyn may come to power in the UK.
Chinese gold demand has increased very substantially again and Chinese gold imports are seen jumping 50% back to 1,000 metric tonnes as reported by Bloomberg.
The world’s biggest gold market looks set to increase imports through Hong Kong by about half this year as Chinese investors seek to protect their wealth from currency risks, a slowing property market and volatile stocks, according to the Chinese Gold & Silver Exchange Society.
Chinese demand for gold bullion bars is surging and is on track to surge more than 60 percent in 2017.
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