More on China, the Dollar and Gold ...

This article confirms what many have been saying about China edging towards the exit door at the dollar party.

Two important points I want to emphasize :

1) China wants to decrease their exposure to the dollar (bearish for the dollar)

2) China is looking at gold as one of the many places they could park all that money (bullish for gold)

Here's an interesting excerpt. (The man quoted is Cheng Siwei, a former vice-chairman of the Standing Committee in China) :

"“Gold is definitely an alternative, but when we buy, the price goes up. We have to do it carefully so as not to stimulate the markets,” he added.

The comments suggest that China has become the driving force in the gold market and can be counted on to buy whenever there is a price dip, putting a floor under any correction."