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China is gradually opening its markets for gold

The only factor that could hold back the rising demand

, at least temporally, is the Chinese government's plan to implement bank stress tests. These tests would measure what impact a 60% dip in property prices would have in banks liquidity. If the banks fail these tests the impact on markets would be more psychological because 60% drop in housing prices is highly unlikely. Failure could lead to more regulations and delay the markets liberalizations plans. On the other hand if the banks pass the tests, it could kick off another huge gold rally. We are anxious to hear more news from the east in the coming weeks.

China is gradually opening its markets for gold

By: KK Bullion
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