Gold At 4 Month High – Concerns About China Property Bubble Grow
by GoldCore
ZeroHedge.com
02/25/2014
Gold is marginally lower in all currencies today but holding near its strongest level in four months. Concerns about the possibility of the Chinese property bubble bursting affecting economic growth in China and the world is supporting gold. Nervousness over Ukraine, after new acting President Turchinov warned Ukraine is close to default, is also supportive of gold at these levels.
Geopolitical risk has increased as seen in the deepening tensions between the U.S., EU and Russia and is not going to disappear anytime soon. Gold eased 0.15% to $1,335 an ounce after rising as high as $1,338.60 yesterday, its strongest since late October.
Chinese shares plunged in recent days and the Shanghai Composite Index is down 7% in less than a week over fears of a property bubble and the continued depreciation of the Chinese yuan.
Real estate stocks led the fall after media reports over the weekend said that real estate developers lowered house prices and banks halted loans to some real estate businesses.
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