China Celebrated May Day by Buying Gold

Gold price technical analysis 30 - May, 2013

Retail sales of gold jewelry rose by nearly 18.8% in the Chinese holidays recording $539 million for these three days, according to Shanghai’s Commission of Commerce on Thursday.

The reason behind this increasing demand on gold jewelry was the recent dip gold prices had and a wedding session is ahead.

Despite the slight decline in the Chinese manufacturing sector Purchasing Mangers’ Index (PMI) to 50.6% in April from 50.9% in March, it is considered a healthy growth, as anything above 50 is positive.

This Slight decline added to another slight decline by 0.8% in the employment sub-index, indicating job cuts, may increase China’s demand on the safe heaven asset.