from Seeking Alpha:
Gold prices have declined below $1,100 and the share price of SPDR Gold Trust ETF (NYSEARCA:GLD) has declined below $105. GLD made two unsuccessful attempts to break the $110 level over the past 9 months. The third one was successful. The main catalyst that helped it price to break the important support level was China’s announcement that the country holds 1,658 tonnes of gold.
The problem is that although China announced that its official gold reserves increased by 604 tonnes, or approximately by 60%, compared to the last public data released back in 2009, it is significantly less than expected. For example, Bloomberg Intelligence expected that the People’s Bank of China holds gold reserves of 3,510 tonnes, and the World Gold chief economist at Australia & New Zealand Banking Group Ltd. predicted that China holds official gold reserves of at least 3,000 tonnes.
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