Chinese Wikileak confirms gold price suppression, UAE gold imports up

http://www.arabianmoney.net/gold-silver/2011/09/05/chinese-wikileak-confirms-gold-price-suppression-uae-gold-imports-up/

The Chinese authorities have concluded that the US and Europe have been artificially suppressing the gold price for years, revealed a cable from the US Embassy in Beijing published by Wikileaks.

It reported a recent radio broadcast that said: ‘According to China’s National Foreign Exchanges Administration China’s gold reserves have recently increased. Currently, the majority of its gold reserves have been located in the US and European countries. The US and Europe have always suppressed the rising price of gold. They intend to weaken gold’s function as an international reserve currency. 

Price suppression 

‘They don’t want to see other countries turning to gold reserves instead of the US dollar or euro. Therefore, suppressing the price of gold is very beneficial for the US in maintaining the US dollar’s role as the international reserve currency. China’s increased gold reserves will thus act as a model and lead other countries towards reserving more gold. Large gold reserves are also beneficial in promoting the internationalization of the RMB.’