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At $1167 gold is basically in the middle of where it has bounced off very aggressively on three occasions & key resistance of $1205.
In the last few days we have seen oil smashed in response to the OPEC meeting & oil is probably now at a level where production will be impacted at least acting as a cushion to further falls & personally I think is probably overdone.
Then there was the Swiss vote, the outcome hardly being a surprise.
Some on here have stated that the reasons to buy gold are running out. I don't think China sees it that way or other developing nations. What they see is a US who's political system is broken & trillions of dollars of exposure in what could be considered junk bonds (USTs) It is quite apparent that the likes of China & Russia are fed up with the US position in the world & their foreign policy. More so they don't like being so exposed to Government that has 17 trillion of debt & massive other unfunded liabilities. They realize that there is no easy way to extricate themselves & its a process & gold procurement is part of that. China is more than happy to lap up the gold that the West has accumulated over centuries. Europe is a disaster & a flawed model, the US government's political model is broken & Japan is stuffed.
China knows this, Russia knows this and they are slowly insuring themselves against it.
