A “TUSSLE” to determine gold prices has connected two groups of people who could hardly be more different – Wall Street moguls and Chinese housewives, with the latter turning out to have the edge.
According to “Voice of China” radio program, one of this year’s most popular phrases may be “Chinese housewives” – as a major force which reportedly spent 100 billion yuan (US$16 billion) over the past two weeks purchasing 300 tons of gold and thus helping to sustain gold prices at US$1,468 an ounce.
The “Chinese gold rush” has prevented short selling, where gold is sold and then bought back when prices fall. The practice was seen as a possible bid to shore up the US dollar – gold is often regarded as a means of safeguarding wealth against a weak dollar – and to maintain stable interest rates in the US.
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Wang Yanlin via CHINA US Focus http://feedproxy.google.com/~r/ChinaUsFocus/~3/SUPPeVWXf5o/
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