Thursday, July 24, 2014

Gold Dips Below $1,300 -- Chart and Analysis

Gold has dipped below $1,300 this morning. The reason is that news is out that China’s gold consumption had fallen more than 19% year-on-year to 569.45 metric tonnes.

Investors bought fewer bars and coins, offsetting higher demand for gold jewelry. Sales of gold bars and coins fell 62.1% and 44.3% respectively, while jewelry sales rose 11% to 426.17 tonnes. Industrial consumption rose 11.3%.

At the same time, China's total gold production in the first six months of 2014 reached 211.1 metric tonnes, up 9.47% from a year ago.

On the other hand, if you know gold’s seasonal trends, is this dip frightening or a buying opportunity?

Now, just because gold usually goes up in the next few months doesn’t mean that it has to. Sure, gold could go lower.

But consider that gold imports into India surged 65% year over year in June, despite the fact that India’s government hasn’t eased its tariffs on gold imports. China isn’t the only game in town.

Plus if, you think we’ve seen the last of geopolitical worries, I think you have another thing coming.

Buy gold and miners ... or don't. You always have to do what you're comfortable with. But it's a truism of the market that the best time to buy is when others are selling.

Good luck out there today, and good trades.

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