China doing a Chuck Norris on gold – waiting and watching

China is the world’s biggest official sector buyer of gold.

In May the People’s Bank of China ‘paused’ buying, higher prices cited:

• GOLD ICYMI: People’s Bank of China completely stopped buying last month

Gold folks expect the buying to resume soon.

• “China’s data did show a pause,” David Tait, CEO of the World Gold Council (WGC), told Reuters on the sidelines of the Asia Pacific Precious Metals Conference in Singapore. “(But) they are just waiting and watching. If prices correct to the $2,200 per ounce level, they will resume again.”

The World Gold Council “are a membership organisation that champions the role gold plays as a strategic asset”.

Other gold bugs have weighed in also:

• A survey conducted by the Official Monetary and Financial Institutions Forum showed that central banks planned to continue to increase their exposure to gold in the next 12-24 months.
• “Central banks are buying gold and China is the main buyer. Sentiment on gold is bullish because of geopolitical tensions and elections. China is expected to buy more,” KL Yap, chairman of the Singapore Bullion Market Association, said.

This article was written by Eamonn Sheridan at www.forexlive.com.