By: Mike Hammer
The latest dip in gold prices brought buyers out in China. Premiums for Chinese retail gold — the amount gold trades for above the spot price — rose to as much as 8/oz USD from a prior reading of 4-6.50. Increasing premiums indicates increasing demand as buyers bid prices up. At the same time, imports into Hong Kong fell to a 2018 low.
Meanwhile, in India, early reports indicate demand returned to “wait” mode after gold rose above 30,000 rupees per 10 grams. A month ago, there was good demand below the 30,000 rupee level but it slowed as soon as gold rose above the 30k mark. Just goes to show, all that stuff about demand organizing around price levels is still true in today’s modern markets. And wouldn’t you just love to be able to buy gold bullion in the US at just $8 over spot?!
You can read all about it in today’s featured article. Then let us know what you think – Is this the bottom, and will gold prices head higher from here? Sound off in the Comments below.
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