The metal is just $5 away from becoming more technically positive as the 50 day ascending moving average line is closing in on gold's 200 day average. James Rickards reports on Kitco that China is buying all of the newly mined gold. They currently hold in the neighborhood of from 3000 to 4000 tons. Richards is forecasting that China will eventually hold 8000 tons of gold. The Chinese are real smart buyers as they usually buy only in down markets while hiding their presence well.

http://stockcharts.com/h-sc/ui?s=%24GOLD