"Gold Springs up: Market is Optimistic to Gold Price"

[sarahfx]

"The President of the Emperor Bullion Investment (Asia) Co., Ltd, Wu Huiling analyzed that viewed from the surface, the direct cause of the forex gold booming is Greek debt crisis which brought about turbulence of the forex market even the global financial market, a large amount of capital flew into the gold market to hedge, resulting in the growth of the gold price.

However, the root of the forex gold price booming, in essence, is the paper currency debt crisis. “If the U.S dollar and euro is not trustworthy, what kind of currency is trustworthy? The answer must be the gold.” Wu Huiling said.

At the same time, the declination of the paper currency urged the central banks to speed up the forex reserves action, to push the continuous growth of gold. Just because the mainstream currencies, such as U.S dollar and euro weakened after the financial crisis, the new countries that are headed by China and Indian began to change the foreign exchange (forex) reserves into gold capital.

Wu Huiling also pointed out that diversification of the foreign exchange (forex) reserves will have profound impacts on the global financial pattern."