Saturday, January 11, 2014

The Chinese Gold Floor

When it [the price of gold] got to US $1,900 [per ounce] I feel like that was a little bit of a spike. Now, I don’t think it is a bubble because you have to look at fundamentals. The fundamental price of gold will be much, much higher. But, when any – again, it doesn’t matter if is gold or any other commodity or stock for that matter – when it runs up that far that fast, you can expect a pull-back.

I didn’t necessarily expect a pull back to these levels but it’s interesting we’ve tested kind of $1,250 level three times. And, there does seem to be a floor there. I call it the Chinese floor - they do need to buy at the end of the day.

- Source, Finance News Network: