Is Confidence Returning to the Gold Markets?

It seems that the writing is on the wall so to speak.  The demand for gold is outweighing the supply.  We all know what that is suppose to mean.  The only fly in the ointment, is the IMF and its forces trying to keep the price down in order to save the Fed.

China gold expert Koos Jansen has noted that physical gold deliveries through the Shanghai Gold Exchange amounted to some 79 tonnes in the second week of January alone. This is an enormous amount given total global newly mined gold output is currently running at only about 54 tonnes a week.But what does all this mean for the gold price in the short term? It\’s hard to tell. In theory all this should be hugely positive for gold medium to long term, but there are an awful lot of short sellers out there who could concertedly try and move markets in their favour–particularly once the Chinese New Year holidays begin which could see an at least temporary halt to the surge in Chinese buying.

via Is Confidence Returning to the Gold Markets? – The Gold Report.

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