Gold $1672.70 OFF $12.10

Keith Barron on King World News http://www.kingworldnews.com reported that the World Gold Council did a report that stated the Chinese were going to back the Yuan with gold in steps to eventually displace the dollar as the world's new reserve currency. It was also reported that China's gold reserves were now the second largest on the globe. Over past years China has secretly been accumulating gold for its account during declining markets and belatedly reporting it.

It shouldn't be a surprise that gold started to weaken following this news. It also wouldn't be a surprise if China helped gold slide as too much positive news for the metal only hampers their buying activities while it is rising. So it seems, both the U.S. and China have an interest in beating down the metal. For the U.S. it makes the dollar look a little better for the time being and, of couse for the Chinese, it sets the stage for their continuing buying at lower levels. It is important to take note that the Chinese buyers are in no hurry to buy it but will continually participate on weakness in their efforts to build up their reserves for the day the new reserve currency transition takes place.

It has also been noticed that the Russian'a gold reserves are at a recent all-time high. Germany's declared interests in repatriating their gold stored abroad should also be a stern warning to all the paper sellers of gold that their days of manipulation are coming to a close along with their days of crookery.

It's paramount to keep on point with your thinking as the controlled media tries to wag the dog in front of the public's eye by driving gold lower in attempts to convince them that China's esposed quest is meaningless.