China's Golden Move

China refrains from buying Gold., is the latest news.
The announcement has slowed down gold momentum.
Gold price,which was going up  in hectic speed has halted.
The gold consuming nations India and China, have taken an opposite reference regarding the purchase of gold.


The Indian Reserve Bank ,took the world in storm ,when it bought gold from IMF.
The next bulk buyer ,would be China ,was everybody's anticipation.
But the Chinese hesitation has  surprised the world.
The Gold prices have been shot .
There would be a decisive down trend .
The competition always boosts the prices.
The expectation of China entering into a purchase mood ,has been diffused by the announcement.
So the yellow metal  will remain in as is where is condition, till any further decicion.


The inflationary trend of Gold has been softened.
The lure and lust for this metal, especially in India and China  are clandestinely pernicious.
The peril expressed in  aacuumulating stocks has led to a buoyancy in acquiring kilos of Gold.
Gold does not earn revenue.
Gold does not also lose value ,as paper stocks and monetary transactions, felt in the weakening of dollar.
The investment interest still persists .
So we do not see a dismal tumble, but a marginal decrease is on the way.


The Golden move of China ,is welcome at this juncture , as the precious metal is breaking the norms in price and blasting the codes in accumulation.
A direction from China, will make the investors look the other way, into stocks ,property and other commodities.