by David Levenstein, Gold Silver Worlds:
Gold prices remain stuck in a narrow range between $1,290 and $1,305, the downside being limited by geopolitical concerns and the upside being capped by generally good U.S. data, which suggest the U.S Federal Reserve will carry on with the current pace of stimulus tapering.
Meanwhile reports show that the Chinese are buying less gold this year and demand during the Golden Week holidays that began on 1 May dropped some 30% from a year ago.
After an exceptional year for gold sales in 2013, the situation is back to something like 2012, according to Haywood Cheung, president of the Chinese Gold & Silver Exchange Society.
While China surpassed India as the biggest bullion consumer last year, the buying frenzy, triggered by a price slump last April has not been repeated this year.
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