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China To Challenge US Dollar Reserve Currency Status
Posted on October 4, 2012 by Mark OByrne| 4 Comments
At the Clinton Global Initiative last week Goldman Sachs CEO Lloyd Blankfein said that the US could risk its status as the world’s reserve currency…
Today’s AM fix was USD 1,786.50, EUR 1,380.92, and GBP 1,109.01 per ounce.
Yesterday’s AM fix was USD 1,777.25, EUR 1,374.73and GBP 1,102.38 per ounce.
Silver is trading at $35.08/oz, €27.13/oz and £21.84/oz. Platinum is trading at $1,707.00/oz, palladium at $664.50/oz and rhodium at $1,180/oz.
Gold edged up $3.40 or 0.19% in New York yesterday which saw gold close at $1,778.50. Silver initially climbed to $34.848 then it fell off in afternoon trading and finished with a loss of 0.06%.
Cross Currency Table – (Bloomberg)
Gold inched up on Thursday, continuing its 4th day of gains as investors
await more clues from central banks on further stimulus plans.
Today, The ECB has a rate decision at 1145 GMT and Bank of England at noon local time.
Investors will watch the key the nonfarm payrolls figure on Friday to determine if QE3 is beginning to stimulate the US economy.
Alan Wheatley, Global Economics Correspondent for Reuters has written a very interesting article, ‘Analysis: China’s currency foray augurs geopolitical strains’ where he emphasizes China’s desire to wean out the US dollar’s currency reserve status.
China is actively taking steps to phase out the US dollar which will decrease volatility in oil and commodity prices and deride the ‘exorbitant privilege’ the USA commands as the issuer of the reserve currency at the centre of a post-war international financial architecture which is now failing.
