Shanghai Market is trying to keep Gold prices low until they have acquired a notable amount of Gold. There is a Tug-of-war going between Western institutions and Asian Markets. Since there is no evidence of Chinese gold price manipulation we have seen gold’s pricing power is moving to Shanghai. At the same time demand in western markets, the pricing power of Shanghai is melting bit.
Over all the Gold price will be falling further and may touch around 28500 in few days. If it breaks another 150 points noone can stop to reach 28000.
But Western institution will do some counter action and try to bring back 29500 end of the month. Also China will boost the buy trend at this month end. Usually they will buy gold as much as can when the bearish trend. Hope it will continue the same in this year too