Gold Falls Despite U.S. Dollar Wobble on Chinese Currency Diversification Concerns

By: GoldCore

Gold closed trading at $1,039.80/oz In euro and GBP terms gold is trading at €699/oz and £635/oz. Support for Gold is currently seen at $1,030/oz and resistance at $1,053/oz.

Gold fell yesterday as oil prices and equities came under pressure and the dollar rose. The dollar has fallen marginally today after the People's Bank of China said that while the dollar may remain dominant, the share of the euro and the yen should increase in its foreign exchange reserves. Diversification of China's nearly $2.3 trillion stockpile of foreign exchange reserves is a long-standing policy that aims to avoid short-term volatility, a senior central banker said. Officials in the People's Bank of China recently stated that they were increasing their gold reserves which currently constitute just some 2% of their entire foreign exchange reserves.

Gold, yuan-denominated

Silver
Silver is trading at $17.08/oz. In euro and GBP terms silver is trading at €11.47/oz and £10.43/oz.

Platinum Group Metals
Platinum is trading at $1,331/oz while rhodium and palladium are trading at $1,800/oz and $333/oz respectively.

The Bullion Services Team

WINNERS MoneyMate and Investor Magazine Financial Analysts 2006

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