It took a while but finally China revealed how much gold it has. While many people aren't convinced that China is telling the truth, following that "revelation" gold prices dropped instantly. Does it have any bearing on what happened or were the prices influenced by other factors?
I think a bit of reality is arriving in the gold market as we get closer to the time that interest rates start to rise. It's relative appeal simply disappears in an economy that is "ok" but is seeing rate rises. It's still a hedge but a lot of people will be waking up to the fact that gold isn't a one-way bet.
If we check Forex reserves, European countries and US's most Forex reserves are in Gold. US Gold reserves are 74% of total forex reserves( 15 days ago), another side, Asian countries, their Gold reserves are not more than 15% in Forex reserves. Except Russia (13%) most Asian country's reserves are less than 8%. as a commodity, Gold is loosing strength and Might in future, It can loose more. Human can spend life without Gold, but Not without water. so Future's commodity which will rule above Gold and Crude is water.
