Chinese Traders Amplified Gold Volatility

Chinese traders are playing an increasingly significant role in driving the precious metals market, and the West is no longer the only game in town.

In early December, when gold had spent nearly two months trading sideways just above $4,000, I wrote a report titled 'Chinese Traders Key to Next Gold Surge.' In that report, I said that Chinese traders, known for their aggressive speculation and their major role in gold’s bull market over the past two years, are important to monitor and were likely to be the driving force behind the next rally.

Sure enough, that’s exactly what happened, as Chinese traders played a major role in driving gold to $5,600 in late January, followed by a sharp drop to as low as $4,423 in just a couple of days. Several reports in the mainstream media have since confirmed my original suspicions, so I want to review and discuss those today.