Commodities | Mar 08 2012
It is interesting to see that China's demand for gold remains solid as incomes across the board increase. It feels inevitable that China will eventually surpass India as the number one annual consumer of the metal in the world. Last year demand for Gold from China rose 20% to 770 metric tons, which is 163 tons short of India’s consumption. However, on a quarterly basis for metals, China has just eclipsed India.
We continue to be supportive of both Silver and Gold however, until we can see some positive momentum we have to remain cautious on long positions. We have small long positions in the market at the moment.
Chart point:
“Stops on long positions are safe at US1758” for those who we caught out last week please note the level at which we had our stop in. Gold is just trading at the 200 day MA, which for gold traders is an important level to watch as trends are made and broken at this level. On silver the stop was a little way away however still protected traders from the volatile move. We are currently at support in both metals however, as yet we have no signal to get back into the market.
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