U.S. Dollar in Forex Trading

246494 Resource 128460 120646 120646 1259769245853 1259769818151 Controlled Is a Gold Asset Bubble Forming?

China concerned? Or China trying to encourage lower prices so it can buy?

As gold prices continue to head north of <a title="gold bubble, gold prices, China, U.S. dollar, silver, bubble, investing" target="_blank" href="http://blog.gftuk.com/public/item/246433">$1,200 an ounce</a>, some investors are starting to get a little jittery about the possibility of a gold bubble as investors blindly rush to get into gold and out of the U.S. dollar. Indeed, there are some who contend that the real place to be right now is <a title="gold bubble, gold prices, China, U.S. dollar, silver, bubble, investing" target="_blank" href="http://www.banks.com/blogs/investing/2009/11/13/is-now-a-good-time-to-invest-in-silver/">silver</a> -- gold is just too hot. And the fact that gold is so hot is one of the subjects of a warning issued by the vice governor of the People's Bank of China, Hu Xiaolian. He warns that gold might be forming an asset bubble right now. An asset bubble that could burst at any time. But is China really interested in staving off a gold bubble for the good of the world? With China <a title="gold bubble, gold prices, China, U.S. dollar, silver, bubble, investing, Hu Xiaolian" target="_blank" href="item/227630">diversifying its investments</a> over the past year, the indications might be that there is something else at work. The Street reports on some of the <a title="gold bubble, gold prices, China, U.S. dollar, silver, bubble, investing, Hu Xiaolian" target="_blank" href="http://www.thestreet.com/story/10636697/1/china-warns-on-gold-prices.html?puc=_tscrss">rumors concerning China's motives for the warning</a>: <blockquote> It was recently rumored that China could be a buyer of the remaining 200 tons of gold from the IMF. Some analysts speculate that perhaps China is trying to bring gold prices down to more attractive buying levels. However, Jon Nadler, senior analyst at Kitco.com, argues that "central banks in general look at foreign reserve management as an ongoing policy.... Price is really not an issue, it's a percentage issue." </blockquote> No matter the reason that China issued the warning, though, it is sound. Something that is gaining in value this fast really is in danger of turning into a bubble. 9 application/xml false bubble China gold bubble gold prices Hu Xiaolian investing silver U.S. dollar U.S. Dollar in Forex Trading Information for forex traders http://www.gftforex.com/land/?aid=7356 Mozilla/5.0 (Macintosh; U; Intel Mac OS X 10.5; en-US; rv:1.9.1.5) Gecko/20091102 Firefox/3.5.5 GTB5 127.0.0.1 127.0.0.1 mmarquit 63.248.48.57 false true false false true 128460 blog blogsite/GFTForex/web