Tuesday, December 27, 2011

Gold prices fall as China tightens internal trading and regulatory controls

Gold fell about $12 overnight as new regulatory controls were enacted by the Chinese government on trading of gold to the public.  It appears from the markets overreaction that they did not read into the new rules and processes, as it simply tightens audit controls, and not lessen the power to purchase the metals by citizens.

*CHINA TO INCREASE MANAGEMENT OF GOLD TRADING, PBOC SAYS
*CHINA GOLD TRADING RESTRICTED TO SHANGHAI EXCHANGES, PBOC SAYS
*CHINA ORDERS UNAUTHORIZED GOLD TRADING PLATFORMS TO STOP: PBOC
*PBOC ASKS SHANGHAI GOLD, FUTURES EXCHANGES TO BOOST MANAGEMENT

Like most news, the gold markets should settle back after the realization that trading isn't going to be limited, just carefully regulated a bit more in the Asain sphere.

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