Gold could get a break this week, maybe, in the form of China. That country is back from the Lunar New Year’s holiday and gold bugs will be scanning the horizons for signs of a pickup in physical buying demand and anything that could put a floor on recent gold selling. Getting lots of people nervous, gold dipped below that psychologically important support level of $1,600 an ounce on Friday.
“What can and will probably make a dent in the recent downward direction is the opportunistical buying to take advantage of the sharp recent price decline,” says Frederic Panizzutti, senior vice president at MKS Finance Geneva. “All factors that led gold toward higher levels over the last 3 years are still intact and we would see no reason why the medium term trend would have changed.”……………………………………Full Article: Source