What Could Prompt the Next Big Move for Gold?

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Feb. 12 (Bloomberg) -- Bloomberg's Olivia Sterns and Bloomberg Industries’ Kenneth Hoffman put futures in focus with a look at gold in "On The Markets" on Bloomberg Television's "In The Loop."

Of leicester, everyone was piling on the short of gold.

What people missed was the reason why people were so bearish on gold was that they were thinking about the taper.

The taper was announced almost a year ago when ben bernanke said he was thinking about it.

That's when gold peaked and by the end of last year, everybody knew taper was going to happen to there was no sopranos.

What is going to happen next in the market that will move go -- gold forward?

Are you surprised that gold rose after the testimony of janet yellen?

Many would've thought gold would have stalled.

Right now, she said the same thing ben bernanke was saying.

Everybody knows taper will happen.

Everyone pretty much thinks it will be $10 billion every meeting and now they are looking at what's next.

Look at the u.s. money supply.

They grew very little last year but has doubled and paste this year.

They are looking at china.

, just china importing?

China was the largest importer of gold last year.

There is a lot of positive impact.

All of a sudden, the street is getting bullish on gold.

On china, according to the china gold association, chinese consumption of gold jumped 41% last year.

I guess chinese buyers are taking advantage of relatively lower prices.

How long can that last?

It could be old big number.

-- it could be a big number.

We note the important number into china is 1000 metric tons of old which is huge.

Where is that gold going?

We can see customers buying gold where they were not allowed to for 30 years.

How much of that gold is going to the chinese government and how much is going to traders who are putting on a slop tray to take advantage of interest rate differentials?

In april, we should get a big number.

People expect in april for the chinese government to put out how much gold is officially in their vault.

People are keying on that number to see if the chinese government is behind is buying.

How about all those other turmoil in the emerging markets?

What impact is that having on gold?

If i'm in countries where there is a currency falling apart, i want to own gold.

Currency crisis of the reason

This text has been automatically generated. It may not be 100% accurate.

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