Dollar Wobbles on Chinese Currency Diversification Concerns

Source:

"People's Bank of China said. . .the share of the euro and the yen should increase in its foreign exchange reserves"

Gold

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.

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