China, pursuing further diversification of its foreign-exchange
portfolio, plans to take advantage of lower gold prices and increase its gold
holdings, said Zhang Jianhua from the People's Bank of China. Bleak economic outlook,
growing inflation and extensive monetary easing undermined investors' confidence.
Gold is considered to be a �safe haven' as it is a sort of hard currency
capable to limit risks inherent to the current economic environment, he added.
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