Zhang Jianhua an offical with the People’s Bank of China declared recently that

“No asset is safe now. The only choice to hedge risks is to hold hard currency – gold.”

Zhang, the bank’s research director, recommended buying the dips: “The Chinese government should not only be cautious of the imported risk caused by rising global inflation, but also further optimize its foreign-exchange portfolio and purchase gold assets when the gold price shows a favorable fluctuation.”

Source: BusinessInsider

Interestingly today, gold just broke its 200  day moving average. If the bears recently said sell when gold broke below 200 DMA, then they should equally say buy as it breaks to the upside, but there is a fat chance of that.

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