CHINESE GOLD REMARKS overnight helped drag the metal lower when the head of State Administration of Foreign Exchange said China faced constraints in adding gold holdings, considering it already holds 3000 tons. SAFE said the long term yield of holding was not good, dampening speculation that Beijing would buy the remaining 191 tons of gold on offer by the IMF. Whether these methods are a way to lower the price of gold with the intention of buying it later at more attractive prices remain to be seen. Golds failure to break 1140 gives way to 1105 as the next target, followed by 1087 viable this week. GBPUSD resumes its post-data damage, hitting the $1.4930 target in last IMT, but support standing at $1.4860. As yen stabilizes, NZDJPY and CADJPY appear most vulnerable of the yen crosses to lose their recent gains, eyeing 61.80 and 86.60.
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