When asked about Chinese demand Norcini stated,“Your sources have been reporting for months that demand from Asia, particularly China has been staggering, especially as the market has moved lower. This FT story has simply confirmed what King World News has been reporting for months, and that your sources have been accurate.

It’s apparent to me that there has been a very large buyer in the gold market, particularly on moves down towards the low $1,300’s on gold. It is obvious now that China has in fact had an insatiable appetite for gold. This explains why we have had such a huge drop in open interest in the gold market, while gold has only fallen a mere 6%.

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/2/2_Chinese_Gold_Demand_Stuns_London_%26_Hong_Kong_Traders.html