china may start new sovereign funds to invest , page-3

The Chinese are buying..our SILVER

Gold and Silver Set Record Highs on China Buying Bets, Oil Eyes April Top

Commodities Metals


Gold, Silver Set Record High on China Buying Bets


Spot Gold (NY Close): $1506.85 // +0.60 // +0.04%


Prices gapped higher through resistance at $1508.95, the 200% Fibonacci extension of the 3/7-3/15 downswing, to challenge the top of a rising channel in place since mid-March. A break above this boundary exposes the 238.2% Fib at $1533.44. The 200% Fib level has been recast as near-term support.


Precious metal prices soared in overnight trade following a report from Century Magazine that claimed China plans to invest some of its more than $3 trillion in FX reserves in various assets including energy and precious metals. PBOC chief ZhouXiaochuan has said the current build-up has exceeded "reasonable"levels, while independent reports have pegged the "right" amount of FX reserves for China at no more than $1.3 trillion.


On balance, this hints a substantial amount of capital is due to enter commodity markets, suggesting prices will continue to press higher over the near term as traders returning from the long holiday weekend digest overnight news-flow.

http://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/commodities/2011/04/25/Gold_and_Silver_Set_Record_Highs_on_China_Buying_Bets_Oil_Eyes_April_Top.html

Cheers

Sheeza