Bascially my take from this article is that China has put a floor under gold....excerpt and link follows:

"China is encouraging its banks to finance acquisitions in the bullion sector. The Chinese command and control wants its business leaders involved in bullion projects across the globe. China is encouraging its citizens to own gold and silver. Bullion is available at government-run banks. China is paying premiums for raw ore to be shipped there for contract milling (or milling at discounted prices). … China has shown its gold-loving hand regardless of their official protestations to the contrary."

http://www.gotgoldreportsubscription.com/GGR20100808.pdf