China launched her first two gold etf this week. For the first time 120 million Chinese investors can buy gold at the touch of a button and they all love gold. The Chinese are holding back so far waiting for signs of a bottom. They will not buy on the way down but Once they figur bottom is in, They will rush into the market en mass. They will chase anything if price is going up. They drove garlic up 1000% in a few month. What does it take to start the feeding frenzy ? Maybe as little as a positive comment from Soros, a dovish talk from Bernanke, Goldman sach whistle a different tune. A little escalation of the Syrian war ,US entry. A news report of central bank buying. We are overdue some central bank buying news. They were buying at 1500. They sure are buying down here. Once the Chinese hear central banks from Korea, Russia....bought more gold they will rush in. And if they hear People' Bank buying 100 tons they will drive gold to $1600 within week.
Jim Rogers said he will buy agressively if gold goes to $1200. Its time. This latest round of Hong Kong selling maybe related to biannual bank capital requirement check. Banks are calling loans back. Speculators forced to dump. It all ends June 31, this downtrend ends on Friday. Jim Rogers buys. China central bank probably bought all the forced seller's gold. Jon Najarian thinks the month flushes out all the weak hands. Goldman shorted at $1600, they are unlikely to short more down here. They are using words to scare small guys to sell , retail investors to short. While they themselves are covering,loading up.