The gold market is trying to sort out what is going on in China.
One the one hand, April gold and silver jewellery sales were down 30% y/y in April, according to National Bureau of Statistics data on Monday. That might be an outlier because April 2013 was a super-strong month but Macquarie analysts say it points to lower prices.
On the other hand, Chinese imports continue to rise and in Ukraine an ambush of government soldiers today pushed the country closer to civil war.
This wedge can’t go on forever