Despite news that Country Garden failed to make an international debt payment overnight the US dollar forged a downside extension and posted the lowest trade since September 29th thereby underpinning gold around yesterday's highs.
Furthermore, uncertainty in the Middle East has fostered further short covering in US treasuries removing another outside market pressure from the gold and silver trade.
Unfortunately for the bull camp, tonight China will release its new loan tally for September, and with expectations calling for a significant jump over August, that news could lift the Chinese currency and in turn moderate Chinese domestic flight to quality buying of gold...[MORE]
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