9/30/2016 Chinese gold imports from Hong Kong totaled 1.64 million ounces in August, down 15% from the same period last year. The figure is the lowest monthly import of the year and represents a 45% drop from the 2.9 million ounces imported in July. Gold trading at multi-year highs has quelled the appetite of the world’s largest gold consuming country this year. With China heading to a one week holiday in a few days, buying out of Asia should drop substantially during the first week of October. Gold is already on tenuous ground and China’s absence next week may be the catalyst to send it below a convergence of support levels. First, there is a trendline that has held nine times since December of last year with support currently at $1,315. The 100 day moving average is at $1,310 and psychological support awaits at $1,300. If all three of these give way, it could be a swift move in gold down to the 200 day moving average at $1,254.
ITM Trading’s Webinar and Educational Videos
In this webinar we will talk about what the SDR is, what it is used for, what has recently occurred with China and how this could affect the global financial system. Join us Tuesday October 4th at 3 pm PST and bring your questions. Reserve your seat online here!