Gold price elevated above 1100 once more

Asian markets spent the day mostly selling risk assets, following negative sentiment in US session as rumours circled about a cut in China’s required-reserve-ratio (RRR). This measure of a commercial bank’s reserve (placed at PBoC) over actual lending is now a tool to stabilize financial market. A cut would imply growing trouble in the economy.

Today’s higher CNY fix and assurance from State Administration of Foreign Exchange (SAFE) have not averted outflows, nor did a strong Non-Farm Payrolls data in the US Friday.

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Gold price elevated above 1100 once more, in reserve to the rest of commodities. The safe haven asset gathers considerable buying interests amid current risk rout in Asia, thus will likely retain this level. Gold holdings by exchange-traded funds increased 0.8 percent during the week ended January 8, according to Bloomberg.

source: DailyFX

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