That was quite a rebound for gold, just in the time it took yours truly to get in a morning workout. From down $10+ an ounce to up $5+ an ounce, the current Bloomberg story about the disastrous knock-on effects of (what else?) China gold demand and technical levels being breached to the downside are now mute, at least for the time being.
Short-covering and renewed safe haven demand after renewed violence in Ukraine are also credited with the rebound from multi-month lows, however, gold traders have reportedly been bored by the whole Russia/Ukraine thing lately.
Anyway, I chatted with Cory Fleck of the Korelin Economics Report again yesterday.
The .mp3 file is again available here at the blog – just click on the image to the right – or you can go directly to this page over at KER.
We talked about the ongoing story of China gold demand and how it’s being told in the West in what, in my view, is a pretty remarkable demonstration of just how much many in the West hate the metal.
As detailed here on multiple occasions over the last week or so, one off-hand comment by one precious metals consultant about the amount of gold that could be deployed as collateral in China’s banking system and, all of a sudden, China is a negative for the gold market rather than a huge positive. Sometimes I wish I could get a look 10 years into the future to see how the whole China-gold thing plays out.
[To access commentary that Tim only shares with subscribers, join Iacono Research.]