by Lawrence Williams, MineWeb.com:
With another 59 tonnes of gold withdrawn from the Shanghai Gold Exchange (SGE) in week 6, Chinese demand, as represented by the SGE, is already up 32% on last year at 374 tonnes (as against 320 tonnes a year ago) – and last year’s first six weeks were a previous record, although perhaps not directly comparable as the New Year holiday fell a little earlier in 2014. With this year’s holiday period now in full swing, and with the SGE closed for the week long duration, we are going to see something of a fall-off, which is probably one of the factors adversely affecting the global gold price over the past week. If you take this much gold demand off the market then prices are almost certain to weaken, although it is gold in the pipeline from the West to China and other points East which should be setting the pattern and this will still be substantial.
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