{"id":8139,"date":"2011-11-09T01:32:11","date_gmt":"2011-11-09T06:32:11","guid":{"rendered":"http:\/\/drduru.com\/onetwentytwo\/?p=8139"},"modified":"2011-11-09T01:32:11","modified_gmt":"2011-11-09T06:32:11","slug":"gold-upward-trend","status":"publish","type":"post","link":"https:\/\/drduru.com\/onetwentytwo\/2011\/11\/09\/gold-upward-trend\/","title":{"rendered":"Chart Review: Gold’s Upward Trend Revs Up Again As Chinese Demand Soars"},"content":{"rendered":"

The gold bubble continues to “unpop.”<\/a> In fact, as it turns out, the recent dip in gold was just a pullback to trend. This three-year weekly chart puts some perspective on the recent pullback. <\/p>\n


\n
\"Gold's<\/a>
Gold's upward trend continues nearly unabated<\/figcaption><\/figure>
\nSource: stockcharts.com<\/a><\/strong>
\n<\/center><\/p>\n

While gold skeptics were declaring that gold’s “bubble” had popped again, the Chinese were busy scooping up the yellow metal at the lower prices at a furious pace. From the Financial Times<\/a>:<\/p>\n

“Chinese gold imports from Hong Kong, a proxy for the country\u2019s overall overseas buying, leapt to a record high in September, when monthly purchases matched almost half that for the whole of 2010…Data from the Hong Kong government showed that China imported a record 56.9 metric tons in September, a sixfold increase from 2010.”<\/p><\/blockquote>\n

The Chinese apparently know a bargain when they see one. I estimated that the first buying opportunity for gold would be a 10% correction<\/a>, and gold just barely dropped that far from recent highs. The Financial Times cites several drivers of strong Chinese demand:<\/p>\n