China’s gold demand for 2013 exceeded 1000 tonnes for the first time, up 41% for the year, according to Reuters. The drop through $1200 saw buyers stepping looking for a cheap deal said Chen Min at Jinrui Futures in Shenzen.

“The sharply lower prices attracted a lot of Chinese consumers looking for bargains. Gold will continue to be an attractive investment in China in the near term as prices look steady near $1,200 an ounce,”

While normal consumption is fairly well measured it’s unknown how much the PBOC may have added to their holdings after announcing in 2009 that they would increase reserves. They were holding 1054 tonnes at the last count back then.

Despite the rest of the market largely shrugging off the jobs numbers last week gold continues to sit on the recent highs.

The $1277/80 level at the 38.2 fib of the August fall is still holding as resistance and a break will finaly bring $1300 into focus.

Gold daily chart 10 02 2014

Gold daily chart 10 02 2014