Excerpt from: World Markets
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| March 09, 2010 | | Spread bets and CFDs on gold prices | Gold prices are lower today in commodities trading, thanks to dollar strength and comments made by Chinese officials. Spread betting and contracts for differences should consider the effects of comments made by Chinese officials with regard to foreign reserves.
Even though China has upped its holdings of gold in recent years, the country still claims to rely heavily on a diverse portfolio in U.S. dollar, euro, and yen assets, and that the strategy of holding U.S. Treasuries still makes the most sense.
What was really damaging to gold prices, though, was the fact that one Chinese official said that gold did not provide a solid rate of return in the last 30 years, and that gold purchases could hurt Chinese consumers anyway if gold actually did appreciate. | Topic Tags: CFDs, commodities, contracts for differences, gold prices, spread bets, spread betting, U.S. dollar | |
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