from Gold Core:
The Chinese yuan is at a 19-year high against the U.S. dollar which is providing support to local Chinese buyers through cheaper local bullion prices. What is unknown is the real volume of gold bullion purchases by the Chinese central bank as it looks to reduce its exposure to the U.S dollar, such is the volume of dollar reserves on account.
With some $3.2 trillion in official reserves, the Chinese have gone about their central bank gold bullion accumulation programme quietly and with little fanfare. When the dust settles on 2013 the big story will be ‘China, Less Dollars, More Gold.’ Whether or not the big game is played out and the Chinese back the yuan with gold, the long term prospect for the gold price is very positive.
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