China has approached foreign banks and gold producers to participate in a global gold exchange in Shanghai, people familiar with the matter said, as the world's top producer and importer of the metal seeks greater influence over pricing.
Some of the Fed-induced euphoria that became manifest one week ago dissipated during the course of this week as market participants were left with an environment wherein Fedspectations can now be considered as being off the table.
The new trading week was off to a rocky start in precious metals as, despite only a relatively small, 0.20% advance in US dollar (to just above 83.80 on the index) the complex headed for lower price ground overnight.
The yellow metal thus fell by 2% to an intra-day low of $1,560.60 on the bid-side as the US dollar picked up some serious safe-haven-flight flavored steam and gained more than eight-tenths of a percent.
Gold’s last/best chance to try for the $1,650 target ahead of the Fed today comes from a lower-than-expected US durable goods orders figure and the flicker of a QE3 hope that such a metric might give rise to among speculators.