China Adding To Gold Holdings
$GLD
China’s central bank boosted its Gold holdings in October, raising them by about 14 tonnes, as it continues diversifying its foreign exchange reserves
The value of China’s Gold assets was $63.26-B at the end of last month from $61.19-B at end-September, according to data on the People’s Bank of China website released Saturday.
That works out to 55.38-M oz, or about 1,722.5 tons, based on the London Bullion Market Association afternoon price auction on 30 October.
China ended 6 years of mystery in July over how much Gold it has as it seeks to drive greater global use of its currency and pushes for the RMB Yuan to be included in the International Monetary Fund’s Special Drawing Rights (SDR) basket.
Efforts to promote the RMB Yuan have boosted speculation the government is stockpiling Gold as part of a plan to diversify its $3.53-T in Forex reserves.
China’s Gold reserves rose by about 15 tonnes in September, 16 tonnes in August and 19 tonnes in July. It disclosed on 17 July that its holdings had risen 57% since Y 2009.
China has only about 2% of its reserves in Gold, compared with 74% for the US and 68% for Germany, World Gold Council data show.
Global bullion prices have fallen for the past 5 Quarters as expectations mounted that the US Fed would increase interest rates for the 1st time since Y 2006.
Gold fell 4.6% on the week, the biggest decliner in a year, as a rate rise in December looked more likely after appearingly strong jobs data.
Higher rates cut the appeal of Gold because it does not pay interest or offer dividends like bonds and stocks.
| Symbol | Last Trade | Date | Change | Open | High | Low | Volume |
| NYSEArca:GLD | 104.1 | 6 Nov-2015 | -1.54 | 104.17 | 104.42 | 104.02 | 8,831,800 |
| HeffX-LTN Analysis for GLD: | Overall | Short | Intermediate | Long |
| Neutral (-0.22) | Bearish (-0.38) | Bearish (-0.29) | Neutral (0.01) |
Have a terrific weekend.
HeffX-LTN
Paul Ebeling
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