Chinese Gold market back in action after Golden Week holidays

CHINA October 09 2014 10:35 AM 
SHANGHAI (Scrap Register): The Chinese bought gold as they returned from the week-long Golden Week holidays, although some market participants seemingly are waiting to see if prices slide again.

Gold hit its lowest price of 2014 on Monday, and traders were watching to see if this would trigger physical demand when the world's No. 1 gold-consuming nation of China returned from holidays Wednesday.

The metal has since bounced more than $30 from its low, which might have led to at least some reluctance on the part of Chinese who missed the bottom.

"They have been buying a fair bit, supporting the market. But the amount is not substantial. They are sitting and waiting for the market to go lower in order to buy. Premiums are around $3 in China, $1.50 in Hong Kong and Singapore and $7 to $10 in India," said Bernard Sin, global head of precious metals trading with MKS (Switzerland) SA.