The global stock market rout of the past week was sparked by concerns over a possible interest rate rise by the U.S. Federal Reserve and not by the devaluation of China's yuan currency, a senior Chinese central bank official told Reuters on Thursday.
A number of readers and bloggers have recently suggested there must be collusion between America and China over the transfer of physical gold from Western capital markets. They assume that governments know what they are doing, so there is a bigger game afoot of which we are unaware.
Uranium and rare earth miners are outperforming gold miners by at least 13 percentage points over the past month. This may be forecasting a risk on rally as investors speculate that China, Japan and the emerging economies are bottoming.
Seeing the trouble it has caused, however, you might forgive China's leaders for wanting to marry strict regulation with a boom in financial services. Gold investors everywhere might want to thank the bureaucrats' strong hand, too.
Gold inched up on Thursday, continuing its fourth day of gains as investors await more clues from central banks on further stimulus plans. Investors will watch the key the nonfarm payrolls figure on Friday to determine if QE3 is beginning to stimulate the US economy.
Spot market gold bullion prices dipped below $1,770 an ounce during Monday morning London trading, though they remained in line with the last fortnight's price action, while European stock markets rallied along with the euro.