China Voices Dollar Concerns at G20 Summit

Gold
Gold fell yesterday on technical driven profit taking and is currently trading at $996.75/oz. It traded in a range overnight of $991-$999/oz. Support is now at $990/oz and resistance is at the recent high at $1,024/oz. All eyes are on the G20 summit in Pittsburgh and trading is likely to be cautious prior to the meeting. The dollar fell this morning after a draft communiqué from the G20 suggesting that interest rates, including those in the United States, would remain low for the foreseeable future. Tensions remain and have yet to be resolved and China and other US creditor nations are increasingly concerned and vocal regarding the ultra loose fiscal and monetary policies in the US and, to a lesser extent, the UK. A senior official from China's central bank said Thursday that stability of the weak US dollar is critical to the global economic recovery. China's continuing call for a review of the dollar as the world's reserve currency has led Treasury Secretary Geithner to issue the usual assurances of the 'strong dollar' policy at the start of the G20 summit. Growing concerns about the dollar's continuing role as the sole global reserve currency should see gold well supported at these levels.

Silver
Silver is currently trading at $16.25/oz.

Platinum group metals
Platinum is currently trading at $1,298/oz while palladium trades at $293/oz and rhodium at $1,650/oz.

Disclosure: No positions.

Comments

[ManAboutDallas:]

Can we take up a collection to buy a matching set of butt plugs for Geithner, then stick one in each end of him, and hold them there until he explodes? It shouldn't cost too much, or take too long.

Sep 25 09:56 AM

[nova:]

Obama administration credibility is on a par with a used care salesman. Well, the US Congress is another corrupt & rotten place. So is the FED.

It appears that the American empire is about to go down very hard with highly dedicated efforts of Obama and US banking oligarchy.

It is just a matter of time before a major confrontation will happen between the USA, Britain and the rest of world.

Sep 25 10:01 AM

[JeffDB:]

I think China loses the right to complain about the value of the dollar as long as they peg their Yuan to it, holding it artificially below its inherent value.

Sep 25 12:48 PM

[tripleblack:]

10:4, Jeff. Its like a neighbor complaining that the lawnmower he borrowed from you 2 years ago stopped running.


On Sep 25 12:48 PM JeffDB wrote:

> I think China loses the right to complain about the value of the
> dollar as long as they peg their Yuan to it, holding it artificially
> below its inherent value.

Sep 25 02:15 PM

[Albertarocks:]

>Gold fell yesterday on technical driven profit taking and is currently trading at $996.75/oz. <

God that phrase "technically driven profit taking" just drives me around the bend. You're listening to MSNBC too much. Technically driven profit taking had nothing to do with the slight pullback in gold and everything to do with FED intervention.

Sep 26 02:11 PM

[sorgmot:]

The President of Brasil explaned that his country holds US$ to settle accounts with countries who sell goods to Brasil.

The US$ is widely accsepted.

Why not hold yen from Japan and buy US$ as you nead or buy the currency needed? Payola perhaps?

Sep 26 03:01 PM

[Donald Ingram:]

More the other way around. China lends the US a new car - and it is returned all smashed up! Worth next to nothing.


On Sep 25 02:15 PM tripleblack wrote:

> 10:4, Jeff. Its like a neighbor complaining that the lawnmower he
> borrowed from you 2 years ago stopped running.

Sep 26 03:39 PM

[LaChic:]

Watch China, what is going to happen if China decides enough is enough and stops buying our debt?

Sep 26 06:10 PM

[PG13_Funnys:]

Reality is - and not told by [corrupted] Media;
The World Protested the G20 - Stocks fell;
But ? why did Gold n Silver drop too ? =
"They" manipulated back to avoid panic ;
======================...
Why Pay Taxes ? Just print MORE Money !
======================...
GR.IP - GET Rid of Incumbent Politicians
36 days until the ELECTIONS !

Sep 27 12:14 PM

[tripleblack:]

Well, you might be right had we been talking about China electing to purchase TBills and such, but since the topic was the yuan/dollar peg, the analogy is a bit weak.

Also, China persists in complaining rather than de-coupling their currency from the dollar, which would lead to the conclusion that it is in their own best interests to do what they are doing, rather than go it alone and let the yuan trade in the same realm as dollars, yen, pounds and euros.

Maybe they will just fix the lawnmower and return it (unpeg the yuan), and give up the price advantage they currently enjoy, but I suspect they will instead just let the grass grow tall and blame us.


On Sep 26 03:39 PM Donald Ingram wrote:

> More the other way around. China lends the US a new car - and it
> is returned all smashed up! Worth next to nothing.

Sep 27 09:37 PM

[Gold Bug:]

The Demise of the Dollar Peter Schiff
Source :
peterschiffchannel.blo...

Oct 07 04:33 PM

[Gold Bug:]

Dollar Reaches Breaking Point as Banks Shift Reserve
Is the dollar done as reserve currency? Banks shift to Euros & Yen. Investors to Aussie and loonies Greenback down
Source :
4currencies.blogspot.com

Oct 12 04:53 PM