Gold Price Rises as China Increases Reserves

April 24, 2009

(ChattahBox) — Being a bit of a gold bug myself, it’s intersting to see this development. No doubt hedging it’s bets, China has increased its gold reserves to 1,054 tons state news agency Xinhua reported Friday.

The figure is a jump of 76 percent since 2003, that now ranks China only behind the United States, Germany, France and Italy in reserves, according to data from the World Gold Council, an industry group.

Many have doubts whether whether the US and European countries have maintained the reserves they claim to have.

Gold rose to a three-week high in London $913.05 a troy ounce, up $9.25/oz on its New York close, heading for its first weekly gain since March, after the report.

Beijing has steadily added to its holdings of foreign assets amid an export boom that has swelled its trade surplus. Chinese Premier Wen Jiabao has expressed concern the dollar will weaken, eroding the value of China’s holdings of Treasuries, as the U.S. borrows unprecedented amounts to spend its way out of recession. Last month, the central bank governor called for a new global currency to replace the dollar, which is widely used for trade and storing national reserves.

Gold reserves are high on the international agenda, after participants at London’s recent G20 meeting reheated a proposal to sell 403 tons of the IMF’s vast gold holdings of 3,2173 tons to fund financing programs for poor countries.


Comments

One Response to “Gold Price Rises as China Increases Reserves”

  1. ijaz bashir on April 25th, 2009 3:27 am

    plz send me daily gold price and oil price forecast . i shall be thankful to yau .
    thanks
    ijazbashir99@yahoo.com

Got something to say? **Please Note** - Comments may be edited for clarity or obscenity, and all comments are published at the discretion of ChattahBox.com - Comments are the opinions of the individuals leaving them, and not of ChattahBox.com or its partners. - Please do not spam or submit comments that use copyright materials, hearsay or are based on reports where the supposed fact or quote is not a matter of public knowledge are also not permitted.