July 6, 2005
CNN
Photo: Gold is being quoted at just above $423 an ounce in Asia on Wednesday.
SINGAPORE (Reuters) -- China will allow the country's four major commercial banks to sell gold bars to their customers in the near future to boost demand for investment, dealers said on Wednesday.
Currently, individuals in China are only allowed to buy gold-backed certificates from the Bank of China and the Industrial and Commercial Bank of China, dealers said.
Account holders use the certificates to trade in gold instead of buying or selling real bullion.
Gold firmed in Asia on Wednesday as the dollar fell from a 14-month high against major currencies, but dealers were careful about buying too much ahead of a key report on U.S. jobs.
Demand from Asian investors and jewellers emerged at lower levels, but dealers said the physical market will be quiet in Europe during the northern summer holidays. Gold was likely to trade in a tight range of $422-$425 an ounce, they said.
Spot gold was quoted at $423.35/423.75 an ounce, versus $422.60/423.30 last quoted in New York.
Gold has lost more than 4 percent in value since hitting a 3-month high at $443.60 an ounce on June 24 -- just a few dollars away from this year's high at $446.70 hit on March 11.
A strong dollar diminishes gold's appeal as an alternative asset as it makes dollar-priced gold more expensive for holders of other currencies.
http://edition.cnn.com/2005/BUSINESS/07/06/china.gold.reut/