Apparently, severe losses in Chinese equity markets has prompted Chinese officials to consider implementing a $278 billion rescue package.

Therefore, gold may see some limited flight to quality buying interest, but as mentioned many times over the last year, the gold and silver trade are not as sensitive to flight to quality events as in the past.

On the other hand, if the situation becomes dire and there is a chance of contagion that could pull in a noted measure of spec and fund longs...[MORE]

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