china added 454 tons of gold to reserves , page-2

Sounds like China now wants go to go up



China's top forex regulator Hu Xiaolian says China holds 1,054 metric tons of gold now, official Xinhua reports. Unclear what gold holdings Hu refers to, but figure is about double that of gold held in forex reserves at end-March, at about 547 tons. Report coincides with talk by gold traders that potential China-sourced purchases prompting market participants to buy call options in gold recently. What is known is China has long-term strategy to diversify forex reserves holdings from USD; IMF in midst of gold sales to shore up its funding; Hu says gold reserves up 454 tons since 2003, sourced domestically. PBOC declines comment, forex regulator couldn't immediately comment. (JWU, TPX, JJC)


0537 GMT [Dow Jones] China forex regulator Hu Xiaolian, in interview with official Xinhua, appears to be giving first public acknowledgment of change in China's gold holdings in years. Says China has been gradually raising gold reserves since 2003, now stands at 1054 metric tons from "600 tons" (PBOC monthly gold data issued every quarter has shown gold reserves largely unchanged for years, including through end-March). Unclear if latest figure Hu giving represents significant jump done just recently or done over past 6 years with monthly publicly available data not being revised, though Hu signals process has been gradual. Hu says China has reported its changes to the IMF. (TPX,JCC)


0603 GMT [Dow Jones] Spot gold at $910.60/oz, up $6.80, building on yesterday's gains. Singapore-based trader at international bank says reports of rise in China gold reserves, confirmation of accumulation of gold reserves by forex regulator has triggered buying. "Some stops have been hit around $910 so it looks likely to follow through later," he says. Volume good by Asian session standards, says trader. (JAC)