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Strategies & Market Trends : Moomin Valley (formerly Troll-free Zone) -- Ignore unavailable to you. Want to Upgrade?

To: Moominoid who wrote (1664)	8/31/2006 7:27:21 PM
From: RealMuLan	Read Replies (1) \| Respond to of 2852

Looks like QQQQ is going to have a shot to $40 as long as there is no bad news? Here is my prediction for your model, it will need revision constantly<g>

To: Moominoid who wrote (1664)	8/31/2006 7:41:53 PM
From: RealMuLan	Read Replies (1) \| Respond to of 2852

[Hope China will have this chance to boost its gold reserve<g>]--INTERVIEW-China's gold reserves "too low", may buy on price dip Thu Aug 31, 2006 12:51am ET By Lewa Pardomuan today.reuters.com SINGAPORE, Aug 31 (Reuters) - Further correction in bullion prices may encourage China to boost its gold holdings, which account for only 1.3 percent of the country's foreign exchange reserves, a senior industry official told Reuters on Thursday. "I feel that it should be increased. I feel that it's too low," said Wan Guoli, chief director of China Gold Association, referring to China's estimated gold reserves of 600 tonnes. "If the price drops, there's a possibility it may acquire some stocks of gold, but that's unlikely to be in a very big way," he said through an interpreter on the sidelines of an industry conference. There have been rumours that China was planning to buy gold, but dealers said high and volatile prices may be the reason why the central bank was reluctant to diversify its holdings into gold to hedge against a decline in the dollar. China is the world's 10th-largest holder of gold, according to the World Gold Council. It has the biggest foreign exchange reserves in the world at around $941 billion and is the world's third-largest gold consumer after India and the United States. Gold spiked to a 26-year high of $730 in mid-May as tensions in the Middle East, rising energy costs and uncertainty in the dollar's outlook sparked safe-haven buying. The metal has swung back and forth since. Gold rose to its highest in nearly two months at $676 an ounce in mid-July but then dropped to near four-week low of around $601 a few days later. It rebounded to its highest in two weeks around $655. Spot gold <XAU=> was quoted around $622 an ounce on Thursday. Wan did not say how low gold should go to prompt China to return to the spot market, but he said any purchases would be done quietly. "The policy of the Chinese government is that they want stability. They may do it slowly," said Wan. "They don't want to cause any instability in the market. China's central bank would increase the gold reserves but it's their practice that they don't announce it." "If the central bank feels they should increase the gold reserves substantially, I am worried it would affect the gold price. It has become apparent that China's demand for commodities have driven prices up," he said. The China Gold Association said this week the country's gold consumption was likely to hit 320 tonnes this year despite an increase in the price since late last year. The country's total gold output is expected to hit 230-240 tonnes this year, compared with 224 tonnes last year, it said. The World Gold Council put China's 2005 gold consumption, including jewellery and investment, at 253.1 tonnes, up from 233.9 tonnes a year earlier. Gold has served as a haven in times of crisis for centuries. The precious metal is seen as a hedge against inflation and rose in value during the Great Depression of the 1930s. © Reuters 2006. All Rights Reserved.