China factors will be key in 2007 gold market

According to this article from Interfax-China, published Friday 2 February, Chinese factors are likely to have an increasing influence on the gold price this year with the possibility that the People's Bank of China will increase gold reserves.

"What might provide fresh Chinese gold demand this year is the possibility China's central bank will increase its gold reserves to defend against the risk of a falling U.S. dollar, and could be a major factor on world markets," the article says.

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