There we have it. China with a deficit and what happens, gold takes a dive. High oil prices, gold takes a dive.
Lets summarise all this, inflation running high in China, the chinese buy gold as an inflation hedge, then as the economy softens they dump gold and it falls. Sounds like a familiar pattern. High oil prices which also threaten growth and ecomomic stability compounds the problem.
Does this mean that all these back yard analysts who think the devaluation of the mighty U.S. dollar are wrong?
It appears that maybe people have been looking at the wrong country. China could be the one forcing gold prices higher due to inflation as opposed to the depreciation of the US dollar.
