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Monday, March 19, 2007

More Gold Bullishness

China's Gold Production Hits Nearly 20 Tonnes in January – STILL Not Enough!

SHANGHAI (Interfax-China) -- China's gold production reached 19.856 tonnes in January this year, up 25.74% from the same period last year, according to statistics released by the China Gold Association Friday.

China is forecast to produce in the region of 260 tonnes of gold in 2007. Even at this growth rate, China will still see a shortfall of nigh on 100 tonnes, and that may prove conservative given additional demand in this 'Year of the Golden Pig.'

Central Bank gold holdings fall to 60-year-low

According to figures from the International Monetary Fund, gold holdings by central banks and other government organizations declined for the eighth straight year in 2006. Bullion holdings were 867.6 million ounces last year, down 1.2% from 2005, the lowest since 1948, according to the World Gold Council.

Of the top 15 government holders, Russia was the only bank to make purchases last year, up 3.8% to 12.91 million ounces in December from 12.44 million a year earlier, according to the IMF. China's holdings of 19.29 million ounces in December have stayed unchanged since 2001.

Gold Rises to One-Week High as Inflation May Spur Hedge Demand

"Gold is well-placed to rally, particularly with the U.S. economy seeing not only trouble in the housing market but also inflation,'' said James Moore, an analyst at London-based


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